Just when you thought that investing in housing might not be the smartest decision, the Wall Street Journal reports that people are looking at housing as a viable long-term option. In the article titled Doubling Down on Housing, the author illustrates that current homeowners are taking advantage of record low interest rates and low home prices to acquire homes that are double the size of their current homes. Now this may require pulling money out of savings to pay down an existing balance but even with that sting, the return is better when compared with current interest paid by banks and the stock market.
Read the article, written by M.P. MCQUEEN, that shows how the traditional formulas used to determine whether it is advantageous to refinance may be a thing of the past.