Archive for September, 2012

Homeowners are saving at least $10,000 a year on mortgage interest: why isn’t this news?

September 14, 2012

Here is a link to charts of the 30 year mortgage rate from 1971 to 2012.

30 Year Mortgage Rates from 1971

I’ll illustrate using 8.5% as the historic rate.

Mortgage Amount Savings: historic 8.5% less 3.5 rate today (down 5%)
$100,000

$5,000 per year

$200,000

$10,000 per year

$300,000

$15,000 per year

$400,000

$20,000 per year

This is great news for homeowners who owned homes and refinanced their mortgages as rates were falling.  And it isn’t new news.

I’m thinking that these savings paid for the increase in the price of gas and food.

Not everyone owns a home, but there are plenty of us.  It is horrible what happened to so many who lost jobs and then their homes.

So why are’t houses selling and leading the way out of this ‘depression’.  The answer: Banks are not lending.

Woody Guthrie wrote the song “This Land is Your Land”.  In it, there is a verse that goes something like:

As I was walking, I saw a Steeple

In the releif office, I saw my people

And some were grumbling, and some where wondering

If this land’s still made for you and me.

I have no doubt, this is our land.  Vote.


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