Americans Just Can't Stop Spending

John...Thank you for your comments.  Very well spoken.

Joan...Thank you for your comment.  Mortgage planning has been around for years, but only recently has it started to come to the spotlight. 

Basically it is a very focused method of financial planning with the focus on how to properly integrate one's mortgage into their overall financial and investment plans.  Many "mortgage planners", like myself, started out in the financial planning arena and learned the concepts, most still do offer other financial services (I personally only do mortgages, but keep up with the financial strategies as well).

Yes, I toot my own horn a little, but I really try to educate people, like yourself, that mortgage planning is becoming more of a need and that borrowers should seek properly skilled experts in the mortgage field to ensure success.  There are not a lot of "true" mortgage planners out there, so you must do your research to find one you like.  AR is a great place to start.

Lauren...It is very scary and thanks for the comment.

Joanne...Yes, a good financial planner/advisor would be in order.  You also hit on a very good point, no matter who mentioned it before (probably Broker Bryant though).  Using your home as an ATM leads to financial destruction, not to mention to the homeless shelter.

However, when you use your mortgage as a financial tool, combined with a financial plan it can solve most financial problems.  I go into more depth in my other posts.

Rhonda...I encounter some clients that don't have the discipline either.  Most of them, after some education, at least attempt to maintain discipline and implement a plan.  For those clients, I implement a special program that maintains contact with them monthly and attempts to keep them on track.  I have to believe that the report is representative that it is the American Way.  Thanks for the contribution.

Lenn...Personal savings is calculated by taking the amount of personal income left after taxes are paid, an amount known as disposable income, and subtracting the amount of spending.  Therefore, contributions to 401(k)s and the like are not factored in.  Home appreciation is one of the reasons economists feel Americans are doing this, ie using the home as an ATM.  They feel Americans have become complacent towards the need to save due to rapid appreciation in their homes.  Other reasons are that Americans are trying to maintain their lifestyles despite the reduction in wage gains.  On the whole, Americans are not investing or saving, according to the numbers.  Thanks for the contributions.

Brian,

Thanks for visiting.  Regarding "untapped equity", the answer would be no as this does not take into account home values and the amount of equity in real estate.  That is one reason economists believe that Americans are in this state, meaning they are tapping into their equity and thus spending more than they actually earn.   Thanks for the comment.

John...This is a repeat of what my reply to this question asked by David...

"This is the basic story.  Beyond this, you would best be served talking with a mortgage planner to better understand the concepts.  Regarding where do you find one, Brian Brady, Karl Christen, Rhonda Porter, myself and some others have shown their qualifications and expertise in this area." 

Kaushik...The home piggy bank utilization for consumption is a bad deal for sure and will lead to financial destruction.  People need to learn to tap equity only to provide inscreased safety, liquidity, and rate of return.  Thanks for adding.

Maggie...Very good point.  We are in a "throw away" society.  No one will argue about buying things, just how you go about acquiring them and if you are in a position to do so in the first place.  Thanks for the contributions.

Diane...You are not alone in not understanding what a mortgage planner does and how we differ.  Without going into length, we basically keep up with financial strategies, tax codes as they apply to mortgages, investment startegies, and loan programs available in order to take the mortgage (use of home equity) and use it as a financial tool to achieve true financial freedom faster.  Does that sum it up?  You can also read some of my other posts for a better understanding and feel free to contact me with any questions.  Thanks for the comment.

Brian,

I couldn't have said it better.  People need to find those mortgage planners now while they have time to implement a proper plan.  Thanks for bringing it full circle.