I was thinking about why The Money Merge Account is so popular this mourning. Everyone I talk to has a desire to pay down there principle balance on there home, to either pay it off or create more equity. Now I know that this is an idea you would think everyone would want. However over the past 3 or 4 years no one wanted to pay there house off or even cared what there loan balance was. They just wanted the lowest payment no matter the cost.We are now in a real estate market where the average homeowner is watching the little equity they have as it slowly dwindles down to nothing. That is not a good feeling. Could this circumstance have been avoided? Is this normal? How did we get here? Why hasn't The Money Merge Account been more popular earlier on?
Well to understand all this we need a little real estate in America history Lesson. I believe the start of this goes back to 1934 when FDR signed the "New Deal". Apart of that "New Deal" was FHA or the Federal Housing Administration. FHA has done and is continuing to do a good job of making housing affordable in this country. They came out with a loan to help consumers afford housing. The first loan in 1934 was an interest only 5 or 7 year loan with a balloon payment on the end. It was only a 20% loan, which means the borrower had to come in with 80% down. Remember that house prices were also more affordable. But as Will Rodgers once said "The funny thing about land is they're not making it anymore." So house prices quickly started appreciating. It then all became supply and demand, as loans started requiring less investment up front from the average Joe, and the rates and terms of loans become more favorable with longer terms and lower rates. it became easier to own a home. Our population doubles every 50 years, those people don't all show up at once but over time. This makes the centers of our civilization more, and more expensive. Here is our real estate prices and the population growth side by side over the last 100 years, so you can see the effects:
The last 100 years:
Yr......Population...Change from last 50yrs...US Median Home Price
1906....75,000,000............Double.................$5,000
1956....150,000,000..........Double.................$16,200
Today..300,000,000.........Double.................$231,000
2056?..600,000,000??.....Double ??............$???????????
We have gone from a 5yr. loan to, 15yrs., to 30yrs., to even 40yr. and 50yr. year loans. Some folks have even done negative amortization loans where they pay a low payment below what is actually owed every month and differ the payments to a later time. None of these loans are bad loans, they all have strategies, and there time, and place, but it shows that the US is a country where we have come to the realization....."WE WILL NEVER PAY OUR HOME OFF."
That is why The Money Merge Account software is so important. It creates a system to pay your home off in as little as 1/3 to 1/2 the time, and it does this with little to no change in your current life style. It is changing peoples lives. It is a light in our dark world of debt. It is a way that the middle class can actually own there own home.I heard that in the old days, neighbors would through a mortgage burning party when they paid off there home. They would invite all there family and friends throw a party, and literally burn there mortgage. Wouldn't it be great to go to a party like that? I would love to have a Party to celebrate real financial freedom.
If you would like to make plans to have a party of your own. Read more of my blogs, and come to our free Money Merge Account webinar, it is every Saturday at 10am PST. You can do it from home. Please learn what you can about this awesome concept. The only thing you have to loose with the Money Merge Account is your mortgage.
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