[loricatus]

Originally Posted by HM2Viking

That and encouraging Americans to "trade up" in their housing every few years.

I grew up in the Northeast, where people bought their home with the intent to spend the rest of their life in the house (pay off the morgage) and maybe even pass the house on to one of their children. Doesn't happen much any more. Think it has something to do with the erroding family (high divorce rate, epecially) and the instability in one's job (no more jobs for life).

In Texas, it seems that one's house is more disposable, than up North. The houses aren't even built to last more than 20 years, yet survive 100. Really don't think my house could make it, without major renovations, the full term of the mortgage-therefore, it is essentially a disposable house. This type of construction encourages the 'trade up' mentality you speak of.

I believe that society, in general, has less permanency (family, jobs, relationships...) which is just being reflected in the housing market.

I really do miss the good old days. But then, again, where they really that good?

[TheCommuter]

Originally Posted by loricatus

I believe that society, in general, has less permanency (family, jobs, relationships...) which is just being reflected in the housing market.

I read a statistic somewhere which indicates that the typical American homeowner lives in their house only 8.5 years before trading "up" or "down."

I know of a young, married couple in Central California. They bought a smallish 1,400 square foot 4 bedroom house in their city of residence back in 2000. In 2004, they decided that the house was too little to accommodate their 3 children, so they traded "up" to a much more expensive 2,700 square foot 4 bedroom. Keep in mind that hubby and wifey did not plan on having anymore kids beyond the three they already had.

The first house cost $120,000. The bigger second house cost $265,000.

The first house had more than enough space for their 3 kids, but I simply think these people were looking for justification to "move up" into something supposedly bigger and better. This is the problem with American society's view of homeownership.

[HM2Viking]

Originally Posted by TheCommuter

I read a statistic somewhere which indicates that the typical American homeowner lives in their house only 8.5 years before trading "up" or "down." .

My theory is that people move every 7 years on average because that is about the time that a house needs to be thoroughly cleaned/painted etc.

I might be the last member of a generation that moved into a house and stayed put. I have always thought it silly to move for moving sake. (It was also the result of an attitude that thinks it silly to spend 5-10 K on a move which is what each move or refi costs.)

[BlueRidgeHomeRN]

Originally Posted by HM2Viking

I might be the last member of a generation that moved into a house and stayed put. I have always thought it silly to move for moving sake. (It was also the result of an attitude that thinks it silly to spend 5-10 K on a move which is what each move or refi costs.)

Call the major news agencies, STAT!

Viking and I totally agree on something!!!!!

[madwife2002]

Arizona is being pretty hard hit too. I bought my house in 2006, we we talked in a mortgage which was an ARM and told we could refinance in 2 yrs when our credit score would have improved to get better rates!!! Our house has dropped in value by $100,000 plus we put in a pool costing $40,000 so overall a loss of $140,000. The Arm is coming to an end and the mortgage is rising to another $600 in december and then up again each month until it reaches 14.1 %. Of course nobody will refinance us as our house is in such negative equity. By the way our interest rate was 7.1% so as you can see not exatly low rate. Oh yeah and our mortgage company refuses to talk to us until we are in arrears with our payments.

[Diary/Dairy]

Sorry to hear that MadWife.....

I am glad that I have my house and that the current market is not affecting me, other than having to hold on to it when I was wanting to sell. I guess it just gives me more time to think about what I want in the next one....

[llg]

Originally Posted by madwife2002

By the way our interest rate was 7.1% so as you can see not exatly low rate.

Actually, 7.1% is a low rate if you look at the history of mortgage rates. I can remember when they were in the double-digits -- and you HAD to have a downpayment of at least 20% before a reputable lender would even consider loaning you the money for a house.

When I bought my condo in 1999, I moved quickly because the mortgage rates had dipped below 7% for the FIRST TIME in my memory as an adult. I was afraid that I would lose my extremely low rate of 6.875% if I didn't act fast. My 3 siblings all acted then, too, refinancing their mortgages DOWN to around 6/5% - 7%. We were thrilled to lock in such great low rates.

[BlueRidgeHomeRN]

Originally Posted by llg

Actually, 7.1% is a low rate if you look at the history of mortgage rates. I can remember when they were in the double-digits -- and you HAD to have a downpayment of at least 20% before a reputable lender would even consider loaning you the money for a house.

Had the joy of a 14.5% 30 yr fixed mortgage on my first house in 1981..payments of $825 @ month on a $51 K home! (Thank you, President Carter...)

Have a 6% fixed now, and am thrilled to death. Our little city has a wonderful lifestyle and has never been part of the housing "bubble", just slow, steady growth over the years.

[mshultz]

Originally Posted by llg

Actually, 7.1% is a low rate if you look at the history of mortgage rates. I can remember when they were in the double-digits -- and you HAD to have a downpayment of at least 20% before a reputable lender would even consider loaning you the money for a house.

When I bought my condo in 1999, I moved quickly because the mortgage rates had dipped below 7% for the FIRST TIME in my memory as an adult. I was afraid that I would lose my extremely low rate of 6.875% if I didn't act fast. My 3 siblings all acted then, too, refinancing their mortgages DOWN to around 6/5% - 7%. We were thrilled to lock in such great low rates.

I remember those times. I took out a 15 year 9.5% fixed rate mortgage in 1988. As the rates continued to fall, I just kept making additional payments rather than refinancing, because the refinancing fees were so high. The mortgage was paid off in under 8 years.

My locally owned bank was interviewed in the local newspaper as part of an article about the mortgage crisis. They virtually never have to foreclose. Obviously, they are only loaning money to those who are able to repay the mortgage loans. They loaned me the amount I asked for, but I was told this was the maximum amount they would be willing to loan. This was despite the fact that I owned the land and had substantially more than a 20% down payment.

The bright side of the slumping real estate market is that homes are becoming much more affordable to first-time home owners. I keep waiting to read articles about how renters and people living in their parents' basements are now able to afford homes, but I won't hold my breath.

[madwife2002]

True I know it is a low rate compared to the late 80's early 90's but the interest rates are lower and I am actually only talking about 2006 November.
I omitted to say that I have a second mortgage which comes in at 12.4 % ouch. That part of the mortgage is fixed thank god for 15 years but it is something called a balloon mortgage so I can only imagine what it will balloon to in 15 yrs LOL. A hot air one I imagine