home ownership rant
This week Jason and I celebrate 4 years in our home! It's technically a condo, but more like a townhouse, and because of that, I just call it a house. :)
I heard this story on NPR the other day about a couple who lost their home to foreclosure. The report put a lot of emphasis in the beginning on the couple's dedication to fixing up their home, how proud they were to live there for 15 years. They completely gutted the kitchen to remodel and upgrade. The problem was, they took out a second mortgage to finance the remodel and didn't read the fine print about the ARM percentage rate going up. When the rate inevitably went up, they were shocked to find they couldn't make the payments. Their house went into foreclosure and now they live in their RV. The NPR reporter chimed in about how the couples life had become simpler and they were happy with less, the woman picking up a new photography hobby. Then, the sound bite from the woman: "See, this here picture is a sunset. I took this out the trailer door with my phone!"
Yeah, photography... with a camera phone.
Anyway, this is not the first time I felt a bit duped by one of their stories, immediately sympathizing with hardworking people who lose their home.. who lost it due to ignorance in signing a second mortgage they didn't read. They never once were quoted as saying they should have paid more attention to the details, and they didn't seem to take responsibility for what happened, although it could have been the editing. I mean, I feel bad that people lose their homes too, I really do. There are a lot of foreclosed homes in my area, and it's frustrating to see nice homes sit vacant and also it's brought our value down. It's a mess that affects all of us. I think the bigger problem is this idea that we have to borrow against our own debt in order to upgrade our homes to ridiculous standards set by...? I don't know.
Watching HGTV the other day a woman was buying her first home, at first she seemed thrifty and discerning, until the realtor asked about her car -- she leased a luxury SUV for $800 a month (!) but was unwilling to pay more than $1000 for a mortgage AND wanted a house with all stainless steel appliances, granite counters, master bath with whirpool and a dozen other luxuries. What is wrong with people?! She ended up not buying anything, because there wasn't anything. In my next house I really want a whirpool tub, that would be awesome. I get it! But when you have a budget you gotta be realistic!!
Jason said recently something about how even smart people get duped into the ARM loans and it mortgage lenders should have told signers the risks. I agree mortgage lenders were coniving but people ultimately are responsible for their own choice. Jason was convinced that we could have ended up in the same place and I have to say I never, ever, ever would have let either of us sign a mortgage that had variable interest because even 4 years ago if you did even the most preliminary research on home buying, the risks were spelled out. I even did searches of apartments for when we moved, not fully convinced we would be able to afford a condo without some crazy loan.
So here's to 4 years of home ownership. We can afford our payments but house went down in value b/c of the economy. So I guess we better still like the place because I don't think we're going anywhere for awhile. :)
I heard this story on NPR the other day about a couple who lost their home to foreclosure. The report put a lot of emphasis in the beginning on the couple's dedication to fixing up their home, how proud they were to live there for 15 years. They completely gutted the kitchen to remodel and upgrade. The problem was, they took out a second mortgage to finance the remodel and didn't read the fine print about the ARM percentage rate going up. When the rate inevitably went up, they were shocked to find they couldn't make the payments. Their house went into foreclosure and now they live in their RV. The NPR reporter chimed in about how the couples life had become simpler and they were happy with less, the woman picking up a new photography hobby. Then, the sound bite from the woman: "See, this here picture is a sunset. I took this out the trailer door with my phone!"
Yeah, photography... with a camera phone.
Anyway, this is not the first time I felt a bit duped by one of their stories, immediately sympathizing with hardworking people who lose their home.. who lost it due to ignorance in signing a second mortgage they didn't read. They never once were quoted as saying they should have paid more attention to the details, and they didn't seem to take responsibility for what happened, although it could have been the editing. I mean, I feel bad that people lose their homes too, I really do. There are a lot of foreclosed homes in my area, and it's frustrating to see nice homes sit vacant and also it's brought our value down. It's a mess that affects all of us. I think the bigger problem is this idea that we have to borrow against our own debt in order to upgrade our homes to ridiculous standards set by...? I don't know.
Watching HGTV the other day a woman was buying her first home, at first she seemed thrifty and discerning, until the realtor asked about her car -- she leased a luxury SUV for $800 a month (!) but was unwilling to pay more than $1000 for a mortgage AND wanted a house with all stainless steel appliances, granite counters, master bath with whirpool and a dozen other luxuries. What is wrong with people?! She ended up not buying anything, because there wasn't anything. In my next house I really want a whirpool tub, that would be awesome. I get it! But when you have a budget you gotta be realistic!!
Jason said recently something about how even smart people get duped into the ARM loans and it mortgage lenders should have told signers the risks. I agree mortgage lenders were coniving but people ultimately are responsible for their own choice. Jason was convinced that we could have ended up in the same place and I have to say I never, ever, ever would have let either of us sign a mortgage that had variable interest because even 4 years ago if you did even the most preliminary research on home buying, the risks were spelled out. I even did searches of apartments for when we moved, not fully convinced we would be able to afford a condo without some crazy loan.
So here's to 4 years of home ownership. We can afford our payments but house went down in value b/c of the economy. So I guess we better still like the place because I don't think we're going anywhere for awhile. :)