THE MORTGAGE CRISIS CONTINUES
Virtually every commentator I have listened to, blamed our economic crisis on the derivatives from the mortgage backed securities, whose underlying worth are based on B paper mortgage loan to people who could not afford them. The folks who signed up for these mortgages were full of hope that somehow they would be able to afford their homes, or refinance when the house had increased in value, and thereby maintain their payments and keep their homes. The problem was that they were putting their hope in the proverbial “house of cards,” and at some point all the cards came tumbling down. By the way we here at DISCOUNT MORTGAGES SERVICES never wrote these toxic loans, but always advised our clients to steer clear of them.
You would think that we would have learned our lessons and avoid repeating putting our confidence in a mountain of borrowed cash. Nevertheless, the Obama administration has decided to take out a mortgage that they can’t possibly pay back. If interest on the national debt stays at lee than 1%, the current rate, than the mortgage payment for every man, woman, and child will be $140,000 each. When the interest rate goes up, as it must, it will bankrupt the American Economy, and the confiscatory taxes that result will destroy all entrepreneurial incentive and investment.
This same scenario was played out in the 1970’s when we strapped ourselves with the enormous debt of the Viet Nam war, the overburdening debt of President Johnson’s “Great Society,” and President Carter’s inexperience and incompetent economic policies when he tried to tax away everyone’s income to pay Washington’s debts. We had a decade of “stag-flation” where inflation was up to 20% but business and the economy were dead. We are heading back to those days again, it can not be avoided.
Fortunately, there is a way to prosper in times of massive government taxes and debt – buy and payoff your own home. The greatest financial asset most American own is not their 401k, but their home. If You spend the next ten years buying, and completely paying off your own home, you will come through the decade in great financial shape. If the market returns, and taxes are lowered, you can refinance or take out an equity loan to invest, and if not you can look forward to a mortgage free retirement.
If Your are ready to take control of Your future call us at MARK ENGLISH REAL ESTATE and DISCOUNT MORTGAGE SERVICES and let’s devise a plan for You. NOW, we are offering a FREE BUYERS INCENTIVES program to help our customers. Please, call us at 303-674-0148, Email us at markenglishrealestate@msn.com or visit us on the web at www.EvergreenColoradoLiving.com