Monday, September 22, 2008

TODAY's U.S. Financial *CRISIS*
Is Also At Solstice, Tilting

Here's the crisis that most people probably won't remember years from now, from our nation's present "financial crisis" as they write /pay their higher tax checks:

Americans who apply for and receive home mortgages from banks or financial institutions, who
1) Have good work histories;
2) Have a decent financial track record- a growing savings and/or retirement account, and a balanced checkbook;
3) Recognized the pitfalls inherent in an 'Adjustable Rate Mortgage', and chose otherwise,
Are the ones who are today being penalized.

They, we, I followed the rules, and promptly pay the monthly mortgage agreement that they, we, I signed up for.

Other Americans, who applied for and received home mortgages from banks or financial institutions, who
1) Had spotty work histories;
2) Had a personal financial record which showed flags- bounced checks, savings accounts with no or little growth;
3) Were unable to, or were not willing to pay their own credit bills, due mainly to the above conditions;
4) Saw Adjustable Rate Mortgages as a sure thing, while never expecting, or knowing that rates can go up as well as lower, or that their home's value could be inflated in the first place,
Will be rescued by the Federal government, keeping their mortgaged homes, at the expense of the first group mentioned above.

Dustbury today, titles the 'CRISIS', the Fiasco, as
"A Blighter Shade of Bail"

No joke, that.
While I am not privy to Charles' entire purchase details concerning the Surleywood estate, I am sure that he was then, and is still a knowledgeable examiner of mortgage paperwork. And is now threatened, as we all are, of bailing out everyone else.

I am however, very privy to my smallish mortgage here at my Green Acres:
I was accepted for a 15-yr. note, at 5.125% back in 2002, for $30 Large, for improvements (a water well, my rock fireplace and support, my deck, the roof alterations).
I pay my mortgage payment FIRST, each month.

Seeing back then the inherent threat, the danger of rising national interest rates, as well as the volatile property values here in what will someday be a great retirement region, I rejected the easy-out, the A.R.M. offered to me by my credit union, the Oklahoma Employees Credit Union (yeah, even back then, that institution saw the value of Tribal employees' inclusion~!).
Who knows what interest rate and payment I'd face today, had I accepted that beguiling A.R.M. route, as apparently so many millions of low-income home buyers did.

As for the piece of property I'm buying over in LeFlore county, using both my former Oklahoma net income (based on my lower, Tax Auditor-I payscale-- I got a decent raise on Sept. 5), but adding in Leticia's salary too, we easily qualified for the purchase through her bank, with a mere 7.5% down payment, and at an interest rate just over 5% again.
We close on that secluded, 10 ac. next Monday... and we are so pleased to be able to begin paying for it in a few more days, next month, October.

*The Lesson I Would Suggest Learning from this all, is to play by the rules early on in your lives, and to expect financial rewards later on, as your lives grow; as should properly be.
Rather than now, and hoping that the money markets do not change over the years.
*But now, we will be expected to pay, through our taxes, the mortgage-bail-outs of everyone who did not follow the rules.

How 'bout you? Whether you live in Oklahoma, Ohio, Texas, California, Iowa, where ever- you will pay for this.

1 comment:

CGHill said...

Actually, my qualifications for the loan I got were sort of marginal, but I can't complain. (It's a 30-year fixed at 6.25, only a couple of ticks above the going rate at the time.)

I should point out here that they were actually willing to lend me approximately twice what I thought I was worth; on the actual loan, we split the difference. I assume they're happy, since I've never been late with the check.