We Are SO Spoiled!

Seriously people, we are a bunch of whiny brats!mortgage rates,mortgage interest rates,mortgage interest rates in orange county

Is it just me, or does anyone remember a time when double digit interest rates were the norm, back in the 80's? What about a time, in the 90's, when 6.5-7% was considered to be a "low" rate?

If I hear one more person talk about 6% as a "high" mortgage interest rate, I just might scream!

I remember buying my first place in 2004, a small HUD condo, with FHA financing. My starting interest rate was 7.5% on a one year adjustable rate mortgage. That means that my rate would adjust every year, once a year, and it could have increased up to 1 full percent each year. It had an allowable maximum increase of 5%, which means that, if the market had soured further, I could have reached an interest rate of 12.5%!!!

Luckily for me, the market continued to decline, and my rate actually decreased slightly each year, but I had no way of knowing, and I was grateful to have my condo and my loan!

Where have those days gone? Where have those expectations gone? Have we lost the thrill and excitement of just knowing that we will finally have "our own place"?

Yes, the mortgage interest rates are unbelievably low right now, and yes, you should take advantage of them, if at all possible.

interest rate increase,interest rates in orange county,mortgage interest rates in yorba lindaBut no, they will not stay in the 3-4 percent range forever, and when (not if) they increase, please try to remember that others have paid much more, and they were happy to do so!

Why?

Because there was a time when you couldn't finance property at all, and then there came a time when you could finance a home, but you had to have a 20% down payment or more.

People were thrilled to finally be able to finance a house with less money down, and they knew that if they held their property long enough, they would reap the reward of increased equity, fueled by an inevitably stronger economic market, and a reduction of their principal balance, as they paid down their loan each month that it was held.

Today's awesome mortgage interest rates, while very welcome and necessary at the moment, are not normal, nor historical averages, and we need to remember that.

We need to be grateful that we have them right now, but understand that they will 'normalize' at some point, and when they do, we need to let go of the past (2010), move on, and let it go.

We will all have to go through some serious 'mortgage interest rate detox', but we are among friends and together we will fight the withdrawals, deal with pain and confusion, and become fully functioning, non-whiny members of society once again.

So, when you hear someone lamenting about their "high" mortgage rate of 5 or 6%, please remind them that we are all SO spoiled and addicted.

Virtual Business Card for Gina Lemos, Orange County Realtor

 

  Southern California MLS Search Button

If You Would Like To Buy A Home In Orange County, Or The Surrounding Southern California Area, Or If You Would Like To Sell Your Orange County Property Or A Property In The Surrounding Southern California Area, Contact Us Today, For A Free, No Pressure Evaluation.

We Specialize In Real Estate Sales In North Orange County And The Bordering Riverside County Areas, Including Anaheim Hills, Brea, Corona, Fullerton, Norco, North Tustin, Orange, Orange Park Acres, Placentia, Tustin, Villa Park and Yorba Linda, California

 

4 Comments on We Are SO Spoiled!

DEC
05
2010
124,942 Points Outside Blog Called Shot Master

When I first began my career interest rates had just come down to 11%.  You wouldn't believe the refi feeding frenzy.   It happened again after rates broke through into the single digits.  At 9% people went absolutely crazy with refinances. 

You are totally right, we need to be thankful for the low rates and take advantage of them.  I don't know if we'll ever see 11% again but they certainly not stay at 4%.
4:49am • #1
378,887 Points 5 Featured Posts Attended Rain Camp Called Shot Master

I hear you Gina!  These rates are SPECTACULAR!  Hopefully buyers don't wait until they start moving back up.
5:24am • #2
243,009 Points 2 Featured Posts Outside Blog Attended Rain Camp

I got an e-mail from a client who is waiting on a short sale complaining the rates were almost to 5%! I remember is the 70's when we bought a house the interest rate was 18%. We paid it because we had to.
5:52am • #3
DEC
06
2010
253,562 Points 8 Featured Posts Outside Blog

Maureen~ I know, right? When I got my condo, 7.5% WAS low, that's why it was a one year ARM! The fixed rate was well above 8%. How things have changed.

Cameron~ I think that some people will sit on the sidelines and only get into the game when they start increasing. It's sad, but that's how the fear of loss works- it's a strong motivator! It's the same reason that people begin buying stocks when the price is on the rise- crazy!

Kathy~ OMG! See what I mean? Yes, I've heard stories about those insane rates of the 70's. It was like buying your house with a credit card : )

Thx for reading my post, everyone! And I REALLY appreciate the comments!
5:29pm • #4


Captcha

Drag the eye to the circle on the side.

Image?id=bcd81fd2d83d905e4c5d8aebbe88c80f09de2f10 Image?id=652749214f30eb5f3e4758388a0a407fe5b85e0d Image?id=0cd7d2c6de3b15e73dc4e012ec31e5b77d1aff9b Image?id=e8e301d9bc8510793a8f201f0fa3f0c7bd691416 Image?id=4d3d7cfe0d729fa830936e118e32d83fc887a161

Accessibility option: listen to a question and answer it!

Type below the answer to what you hear. Numbers or words, lowercase:
Leave a response…

(optional)
Captcha

Drag the graph to the circle on the side.

Image?id=969e81ee453b52fdbc68c1304ed361a7ceb359ba Image?id=626e8789578c25e8870c73a86885eebae0aabb7c Image?id=c9d5359a8eacba91687ab53b4d644710fcddd9c2 Image?id=a531f70b371e0168954ad7ab499ea042ac458cd2 Image?id=8e73bb430a094eff25d648de1d59027b38b6b843

Accessibility option: listen to a question and answer it!

Type below the answer to what you hear. Numbers or words, lowercase:
 
Gina Lemos-Orange County CA Real Estate Agent and Investment Property Specialist (North Orange County CA Real Estate Specialists) Rainmaker_large

Gina Lemos-Orange County CA Real Estate Agent and Investment Property Specialist

Yorba Linda, CA

More about me…

North Orange County CA Real Estate Specialists

Address: 21520 Yorba Linda Blvd, Ste G-528, Yorba Linda, Ca, 92887

Office Phone: (714) 721-6024

Email Me

North Orange County and Riverside County California Real Estate Sales: Anaheim Hills - Brea - Corona - Fullerton - Norco - North Tustin - Orange - Placentia - Tustin - Villa Park - Yorba Linda


Listings

Links

Archives

RSS 2.0 Feed for this blog