Satisfying the mortgage and getting a new one

[Freeman Schultz]

Making a lot of assumptions. So please bear with me. Feel free to critique. 

With the interest rates so high, would an investor be better off simply paying off the mortgage instead of a refi, assuming that they have the capital and then down the road get a new mortgage when interests rate start dropping?

Could one could possibly get a higher LTV from a new mortgage similar to a new purchase mortgage.

Here is an example.

Owner has $700,000 that needs to be satisfied once the mortgage matures. Instead of doing a refi for that amount or doing a cashout refi, they satisfy the mortgage. Wait a couple of months when interest rates are down and then get a new mortgage.

[Ken M.]

Quote from @Freeman Schultz:

Making a lot of assumptions. So please bear with me. Feel free to critique. 

With the interest rates so high, would an investor be better off simply paying off the mortgage instead of a refi, assuming that they have the capital and then down the road get a new mortgage when interests rate start dropping?

Could one could possibly get a higher LTV from a new mortgage similar to a new purchase mortgage.

Here is an example.

Owner has $700,000 that needs to be satisfied once the mortgage matures. Instead of doing a refi for that amount or doing a cashout refi, they satisfy the mortgage. Wait a couple of months when interest rates are down and then get a new mortgage.

Your comment: "down the road get a new mortgage when interests rate start dropping?'

What is an interest rate that appeals to you and when will it happen? Inquiring minds want to know. 

There is no such animal. Your assumption of predictability is misplaced. "No one" saw Covid coming, "no one" saw . . .  I could do a million of these but you're young, you'll catch on in time. You have to do the best you can with the knowledge you now possess.

Yogi Berra — ‘It's tough to make predictions, especially about the future.’