So I heard an interesting snippet on NPR’s Marketplace Money this morning: If you were approved for a mortgage refinance, what would you do with the extra money you save every month on your payments?  The majority of the people said they would use it to pay down debts such as credit cards or second mortgages, add it to a college fund for a child or use it to establish a safety fund . One guy said he would use it to buy some new clothes and other items he has been doing without.

Although some would say this is bad news for the economy since many would in effect remove the money from the national spend pool, in the longer term this wouldn’t necessarily be so. The instinct in the immediate future would be to draw into the lager and hunker down… BUT…once a few months have gone by and the people start to see results such as the college fund or savings account growing, or the debt burden reducing, the natural thing would be to feel better about ones situation and experience a corresponding increase in (consumer) confidence.

This is ALWAYS good for the economy!

Another upside is the mean financial health of the consumers of the nation would be on the upswing and this is something financial advisers have been harping on for years – the American people have financial diarrhea and don’t save enough!

So what would YOU do with your extra dollars a month if you were one of the lucky devils who got to refinance?  Add the extra bucks to your day trading account? Get a new monitor for your trading computer? Add a turbocharger to your car? Buy candy for your honey?

Let me know!