90%+ of mortgage owners do not have enough cash. Further, in most times MBSes are usually worth more than the debt - otherwise, modern banking wouldn't make an

90%+ of mortgage owners do not have enough cash. Further, in most times MBSes are usually worth more than the debt - otherwise, modern banking wouldn't make any sense. Mortgages issued in the last 2 years at ~2.75% are probably worth less than the debt now. So it might actually be the case for a lot of these loans. That being said, the discount is not going to be anywhere close to 50%. The difference in the discount would be evened out by the difference in the interest rate you'd have to refinance at almost exactly. Considering the cost of refinancing, if you bought your own debt with some new debt from some new mortgage company - this would be a losing proposition for 99%+ of mortgages.