Loan Foreclosures and The American Dream

Saturday, December 5th, 2009 at 3:56 pm

Most of us have been raised to think that we will always be strapped with a mortgage. After all, that is the American dream, isn’t it? To have a home that you can call your own. Raise a family in your own home, on the corner, with the white picket fence. Dog running in the yard. Sounds beautiful doesn’t it? Close your eyes, and you can just picture that scene on a warm summers day. But in reality, you don’t own your home until you pay it off. Until then, the bank owns your home.

Unfortunately that is not the case in our society today. I don’t know if you have noticed but people are losing their homes at a very rapid rate. 2.3 million homes received foreclosure filings in 2008. That’s up a whopping 81% from 2007. More children are moving back with their parents. Grand parents are staying at home, so they can help raise their grand kids. It is not a very pleasant scene.

Seeing a lot more of these around.

What is happening to the American dream? Are we ever going to see that dream fulfilled? Can you ever own your home free and clear?Remember, you don’t own your home until it is paid off. Until then, the bank owns your home, and you pay them interest, and lots of it.

On a 200,000 dollar mortgage at a 6% interest rate, for thirty years, you will end up paying the bank more than two and a half times what that home is worth. That’s why it will take you thirty years to pay your mortgage off. The loan is set up, so that all the interest is paid up front, where the bank can take their money out first before you ever really start paying on the principal. As a matter of fact, on this particular loan, they won’t even get to the half way mark on their amortization schedule, until year twenty one. Think about this now. Twenty one years of your life, paying the bank more then 300,000 dollars, of your hard earned money, and it has taken you twenty one years to get to the halfway mark on your thirty year mortgage. You will still owe them 100,000 dollars. The original mortgage loan was for 200,000 dollars. Twenty one years of your life, and more then 300,000 dollars of your money, before you get to the halfway point on your mortgage. How does that make you feel? Cheated? Used? I can see those banks making some money, but twenty one years, and I’m still looking at a balance of just under 100,000 dollars, that you still owe the bank.

And think, they were the ones who got bailout money from the government! You and me should have got the bailout money. But don’t get me started on this one. That is a whole another story.

Are we polishing the handles of a sinking ship?

Titanic. They said it couldn't sink.

Bailout?

I know what you could do! Refinance, and start the whole process all over again. Say you could get out about 50,000 dollars in equity from your home. What could you do with that money?

But wait a minute! The bank is saying that your home isn’t worth what it was when you purchased it. But maybe you could get some money, and you could start that whole process all over again from ground zero. Start paying the bank all that interest, again! They will love you for it. They will be more than willing to write you up to another long thirty year mortgage. Paying them all that interest again. They just got all that money from the government bailout plan to help them do that.

Take a look at your own amortization schedule. You got one when you signed for that mortgage. Most people don’t know what it is and probably never even looked at it. That’s been my experience. Look at how much money, of your monthly payment, is going to interest.

Albert Einstein said, ” Compound interest is the eighth wonder of the world. Those who understand it, earn it. Those who don’t, pay it.” The banks certainly understand it, and they earn lots of it, every day.

Let interest work for you, not the bank

Money never stops working. It doesn’t take a vacation. It works twenty four hours a day, seven days a week, and banks know this and use your money to their advantage all the time. Banks use what they call sweep accounts. They sweep all of the money in your account and mine, at the close of the day. Invest our money, maybe for only ten to twelve hours, and then put it back for the start of the next business day. They make lots of money by using your money that way. Let me ask you a question? Have they ever paid you a dime in interest for using your money? Yes they have. You get 2% on a saving account don’t you? You may even get something back on your checking account also. Come on now. Don’t get greedy. They do pay you, but what they pay you is a drop in the bucket for what they make off your money and mine. That’s what their in the business for anyway. To make money. And they know how to put your money to work for them.

Interest is apart of our every day life. We can either have it working for you or against you.

If only there was a program that could utilize the same processes that the bank uses to make money, and set it up for me, so that I could take advantage of those processes and pay my principal down quickly and thus eliminating all that interest.

Well, there is such a program. It is called the program from Money Merge Account United First Financial. There have been products that have come down through the years, that have drastically changed our lives forever. The Money Merge Account program is just such a program.

This is going way back, but the light bulb is one. Where would we be today without the light bulb.

Edison and the light bulb

How about cell phones. If you would have told me that I can use my cell phone for the Internet, listen to music, and watch TV, I would have said you are crazy. Look at what we can do now.

Last year, 2008, the Money Merge Account program won the Ernst and Young’s Entrepreneur of the year award for financial services from the Utah region.

United First Financial has a special edition of “Success Magazine” in February’s issue, devoted just to them.

The Financial community is discovering this new product, that is paying people’s debt off in a fraction of the time. Just think,….where would America be today, if none of us had a mortgage payment? I know one thing. We wouldn’t have the financial crisis that we’re all going through right now and maybe prevent some of these loan foreclosures.

Quit paying the bank and become the bank. See how you can use the same strategy’s that the banks have used since the dawn of time, but use them to your advantage. Let your money start working for you, not the bank.

Get a free analysis of your finances today. See how soon before you could actually be totally debt free. Money Merge Account program from United First Financial. What do you have to lose except a mortgage and some debt.