Two Things:
It’s nice to hear that Americans are learning from the mistakes of the past. According to DSNews.com, “ING Direct says a recent survey it conducted shows consumers have learned a powerful lesson from the mortgage meltdown-save for a downpayment.”
According to their survey, 42% of Americans “think homes purchased with a bigger downpayment in recent years could have reduced the proliferation of foreclosures and prevented the sharp economic downturn.” Now I’m curious as to what the other 58% thought. Anyhooo, what matters is that a lot of people are tired of the trouble that debt can get them in to. I freak out when I have $200 on my credit card, I can only imagine what it’s like to be tens of thousands of dollars in debt.
Apparently, the survey also reveals that “more than 40 percent of homeowners may refinance this year because of historic-low mortgage rates. Homeowners surveyed indicated that they are seeking new options from the 30-year mortgage product. Nearly four in 10, or 37 percent, said they are likely to consider a mortgage that allows them to make bi-weekly payments to pay off their mortgage faster, without pre-payment penalties.” Well now we’re talking! I thought for a moment that shying away from 30 year mortgages was going to mean looking into ARMs or something. Happy to see it was bi-weekly payments instead. Good on ya, you 37%! If you can handle bi-weekly payments, you’re going to be free as a bird in a few years!
I think it was the great Ben Franklin once said: A penny saved ain’t gonna get you shit. But if you continue to put away some money instead of buying jet skis and shoes, you might just be able to truly afford a home one day.
In other news, The Team Aguilar Website is happy to have a new feature on the website. For any area property search you click on, you will be presented with a Google Map that shows the location of the all the homes for sale in that area. You can click on each one and get property details. In addition, there are 360 degree street views available when you click on the Orange Home icon, and you can click on the yellow and black icon to get school information. Check it out for yourself…
Here’s what it looks like:
July 17th, 2009 at 2:27 am
It seems like these lessons are only learned during these type of down times and then forgotten when things are going very well.
Ben Franklin is a freakin genius. It’s those type of comments that highlights his genius.
July 17th, 2009 at 11:11 am
That is a fantastic new plugin you have! You highlighted the bright side of the economic downturn-it is forcing everyone to get better at budgeting and avoiding debt.
Leon Belenky-Miami Homes For Sale’s last blog post..Sunny Realty Miami Real Estate Update
July 18th, 2009 at 1:24 pm
I never met Ben Franklin, but wonder if you actually quoted him accurately. I could have done without reading the “S” word. Other than that, good post about lessons taught by the downturn. I hope also that people will remember the lessons.
Jim Gilbert’s last blog post..Paloma Lake Subdivision in Round Rock
July 18th, 2009 at 8:52 pm
Good point Jim, I agree. Hopefully this generation will remember this lesson about having something put away for a rainy day and living within their means.
Charles’s last blog post..Las Vegas Housing Market: Foreclosures Down, Sales Up
July 20th, 2009 at 2:37 pm
I agree about “a penny saved” comment by Ben Franklin. People get caught up in a big paycheck and blow nearly half of it on a party and booze. I know a lot of people in real estate did that with big closings. Now look. Most realtors are victims of foreclosure now!
July 22nd, 2009 at 4:16 pm
Love the “ben franklin” quote.
July 23rd, 2009 at 9:02 am
I too agree with the comment of Ben Franklin. From this economic level of real estate business people learned some lesson but when the situation of the economy change then they will forget about their lessons.
July 27th, 2009 at 7:28 am
This lesson has to be learned in Germany. :-/
July 27th, 2009 at 10:04 am
An old Bible verse with lots of wisdom: “The rich rule over the poor, and borrowers are servants to lenders.” Proverbs 22:7 I hope that we learn the lessons that will last.
July 29th, 2009 at 7:16 pm
The Fed and their fiat currency and fake rates, investment banks on wall st selling bundled junk, mortgage brokers pushing products on consumers that should have never been created, realtors not offering sound advice to their clients, and customers not thinking into the future. A lot of blame to go around.
July 31st, 2009 at 11:36 am
I agree: lately when talking to buyers and homeowners I hear a lot more ‘financial responsibility’ coming from them. Its good to know they are learning from past mistakes and I hope we all keep it up!
July 31st, 2009 at 11:47 am
What Brewer Caldwell said. Right on. The people who have learned their lesson in this are now broke, without a home and basking in depression. What about the loan sharks who gave them mortgages they were not qualified for and are now on the phone pushing 30 yr fixed rates to replace the arms they previously sold them. A lot of blame to go around “amen”.
August 3rd, 2009 at 12:52 pm
@ Pawel, true, but I think the lesson has to be learn”t world wide.
August 4th, 2009 at 5:03 am
Thanks for the info- it turns out Microsoft’s bing really is making an impact, it seems to me your blog is getting a lot of search engine traffic from bing- have you found this to be the case?
August 18th, 2009 at 12:22 pm
It is a very hard price that so many have had to pay, let’s hope this lesson sticks! Many people consider debt to be normal, COME ON let’s be ABNORMAL!
September 16th, 2009 at 11:16 am
As time goes by and the economy improves, I think these lessons will be forgotten and remembered only when they are faced with another difficult economy. I hope this is not the case.