jim: I see you have the feedjit traffic feed, how do you like it?

 Steve Harless

Steve Harless  I guess it is OK, I have not noticed any real benefit from most of these widgets!  One widget I used cost me a position on page 1 of Google!  This is kind of interesting, but not sure of its real value.

Jim, good looking blog page - you did good! I absolutely agree with you on your post. Signing my name on the dotted line means I plan to fulfill my contractual obligations. Who knew? I would not have loaned MY money to some of these people, that's for sure. ;-)

Jim - for me, its a personal goal....I would love to be mortgage free....someday.

I'm the same way.  We've substantially paid down our mortgage on our first home.  When we moved, instead of Cashing Out like many people, we applied quite a bit of our equity to the purchase of our new home. 

Now we have a mortgage balance that is about 1 fifth of the home's current value.  It's nice having the equity.  We have a good HELOC i f we ever need it by rarely use it.

Mesa, Arizona Real Estate *** Teri Ellis, Broker, ABR,CRS,GRI,ePRO,MRE   Thanks!  I love the dark blue color.  I think most agents are really like that...in the last few years maybe the buyers placed the abiity to obtain the loan higher than advice from their Realtor!

Jim - BTW, nice looking blog page :) Great post! I completely agree with you.

Christine Bohn, ABR, e-Pro, GRI~Gainesville, FL Realtor®  I must admit I was never maortgage free, and we owned much more expensive homes...we never liked to pay more than $1500 a month in mortgage payment.  So we always held a very big equity stake, and it was almost as good or cheaper than renting.

Brian Luce  Very smart.  That is basically the position we were in.

Maria Mastrolonardo - Naperville Illinois Real Estate  Thanks!  Have a great one!

I'm sure this is why banks are tightening the belt!  Well great post!

Tom Davis - Delaware Realtor - Harrington ERA Realty - Dover, DE

Delaware Real Estate :Dover Homes: Tom Davis : Delaware Real Estate Search:FREE  Maybe the pendulum swung too far one way, and now it is correcting!

We also had lots of those good old easy assumptions.  Remember when bond money and FHA and VA were easy to assume?  Just take over the payments....

Barbara S. Duncan ABR, CRS, GRI, e-PRO Searcy AR   Assumptions used to rule!  Remember the WRAP mortgages of the 80's?

I agree Jim. When I was new, I somehow got it in my head that a client's financing was something I should not get involved in-I am not sure how I got that notion, or who impressed it on me. I quickly changed my ways though, when I started seeing things on HUDs for other agent's Buyer Clients that did not pass the smell test with me. So I started learning what I could as I stumbled along, listening closely and identifying the brokers and lenders with the most to share and the highest ethics.

While I was taking the classes for my CRS designation, I was THRILLED to find an excellent course that helped me understand even more of what I need to know to help my clients:
CRS 105: Making the Right Real Estate Decisions, http://www.crs.com/Education/287?cid=RS105

I refer it to everyone.

Sarah Nopp, REALTOR(R), CRS. RE/MAX Four Seasons, Olympia WA   That course looks very interesting.  Years ago we always used to advise buyers,  We would qualify them, look at ratios etc.  No one does it anymore.  Maybe we should!

It seems as though many people don't even think about paying off their houses anymore and everything is bought with credit, and for some, even groceries.  I actually don't think a person owns a home until they actually own it and do not pay a mortgage every month.  If your paying a payment, it's not yours! 

Colorado Springs Realty Patricia Beck Well if you sold it and you had equity you  receive it when the home is sold.  So there is more than an equitable interest in ownership.

Jim, it's an interesting question/thought, and made me think about all the re-financing going on....I think as a society we've lost a sense of meaning and value for what we have, partly because everything is so easily discarded and/or replaced.  If the average homeowner sells their property every 5 years how many people ever reach the free & clear?

Jim - Great blog!  I'd love to learn how to do the header, by the way.. I haven't been around much lately...been out selling so I can meet my goal of paying off this house!

Jim, that is definitely true but if you stop making payments, you find out pretty quick who owns the house! Buying a home definitely has benefits and building equity is one of them.

Joddie Roberts - Your Spokane Realtor - Spokane, WA  I think as a society the times we are moving into is going to teach many a lesson.  It isn't all about the plasma TVs, and the Disney cruises, it is more basic and it is about the ability to provide shelter.

Debbie White, RE/MAX of Juneau, Alaska  LOL!  I wish I had a few buyers!  Dead here.

Colorado Springs Realty Patricia Beck  So true!  I don't know why everyone has become so stupid.  It really is incredible.

It's almost like careers - Years ago people got a job and stayed with that same company until they retired.  Today people stay at the same company for just a few years and then, if they're not downsized, they move on.

Years ago folks would buy homes and stay in them until they retired.  By that time, their mortgages were paid off!

Today, people buy homes and when after 3 to 5 years they get downsized from their jobs or move on to other comapnies, they sell their homes.

The times, they are a-changing!

Great post, Jim!

Roswell Georgia Real Estate Agent - Nancy Rivera   I know, but are they changing for the better?

Jim,

There is always the constant push-pull of the tax advantages of the mortgage versus the very real wealth of no debt.

It seems logical to think that eventually, in the future, property ownership will be attainable-but so expensive-many people will not be able to pay their mortgage off.

Steve

Jim another fantastic post!  Headline caught my eye.  So true.  I think the more people have the less content we are...really makes no sense but true.  There are lots of families living WAY above their means just to have stuff.

I remember when my own parents were finally able to purchase a home.  It was such a big deal.  I was 13 at the time and they had waited SO long for homeownership.  Waited til they had a good down payment, waited til they had their closing expenses, waited til they could afford the monthly payments, WAITED!  Homeownership was a priviledge for those who earned it not the right of anyone and everyone. 

Once again a great post!  Thanks Jim

Obeoman Steven Stearns  If a person ever really understood the tax benefits of owning a home in real dollars, they would not bother.  The tax advantage to writing off interest is limited.  The expenditure does not outweigh the gain!

Obeoman Steven Stearns  Stuff has a price, and it may detract from one's peace of mind at some point.  Life is more than accumulation - shelter, peace of mind, and security should be a bigger part of the picture!

Kathy Fisher RE/MAX Unlimited Realtor  My parent owned a two family home, so one side paid rent!  It paid half the mortgage!

We live in a different world today and personal responsibility is often not even thought of.  What a shame!  I agree with you completely Jim and teach in my new investors seminars that debt paydown is a part of true financial freedom in RE investing.  Unfortunately there are far too many late night salesman who teach otherwise and far too many consumers that think there really is a something for nothing model that can make them rich...  Let's keep preaching the real truth to all that will listen my friend!  Thanks for the great post!  Steve

Jim, great looking site.  I've been away working real estate and helping family.  Looks like you are ahead of the pack again.  I haven't had a house payment for years.  Sure would be difficult in today's market.

Interesting Post. I actually have had 3 clients this year that owned free and clear. I didn't think it happened anymore

Steve Homer  Steve thank you for the great remarks!  Sometimes it is like a voice crying in the wilderness and no one is listening.  It is better to keep to the truth, and not compromise our values.  If a person asked me if I would do 100% financing the answer is "No!"  I would not buy any property without 20% down! 

Kay Van Kampen, Broker, Springfield Missouri Real Estate  Thanks Kay!  Been slow here still!  Yes!  I have had a payment, but it was never anymore than a rent!  My mortgage was always around $1500 a month!  I try to practice what I preach!

Rob Muller - ABR, ASP, RCC, CNHS, LREA Cherokee County Real Estate  Well it is very rare here in Atlanta.  Most of the deals for the last few years were 100% no money down!  That is why we are in the trouble we are in here...no equity!

Jim~ Ahhhhh...the good old days...People attempted to own everything out right...Today, they own as much as their CREDIT will tolerate !

Doug Fritchie  I think before the year is out, many will be wishing they had a low fixed rate 30 year mortgage or no mortgage!

No, Jim it really is not a smart thing that many people have given up on giving sound advice to their clients. I spoke with a gentleman a couple of days ago who told me that he has the money in the bank to pay off his mortgage but that his financial advisor told him not to... His financial advisor's reason is that a mortgage is "the cheapest money that you can get"... While the amortized interest rate on a mortgage may be more attractive then say a credit card or personal loan it is not as cheap as 0% interest. I don't get it at all... Unless you are using the money that you are holding to invest and the investment is giving you a return that is greater than the interest that you are paying on your mortgage that does not make any sense. I would rather have available equity sitting in my home at 0% interest than have all of my equity used up and have to pay any percentage on it.

 Christopher Ohlsen  If most people are like me me money in investments isn't making anything  in this market or for quite sometime!  When most folks lost money in the dot.Bom failures in the last stock market correction my equity was in my home!  When I sold that home I made a very substantial tax free profit which I rolled into another home, and that I made another major tax free profit from the investment!

No one ever really questions the motives of financial planners.  I had afriend that was one, and one day he let it slip he had filed a while ago for bankruptsy, and had lost his home!  Should I invest with him?  Could it be that the advisers do not want you to move funds that they get paid a commission on, or that they do not want you to move out of their institution?  I still think real estate even in this market is a better place to sink my money than stocks, bonds or most instruments!  I am on the sidelines again, waiting my next deal!

Hi Jim,

 I lived in Georgia during most of the eighties, had I invested in real estate while I was living there, I would own several homes free and clear today.

I was taught that what made America great was that "We saved our money and that we made things"

Jim I believe we all need to get on broad with the good mortgage acceleration program that are out there. Talk about adding incredible value to your clients and helping them pay off mortgages sooner if they want to but we all know that most families will move in the 5 to 8 year time frame. This will allow them to have control with th equity buld up that will occur faster for them. My realtors like using this to show clients that no matter where the housing market goes up or down, their clients will be the best possible position to move and not have to worry if they could move and just get out with out having to bring money to the table. I like that some of us remember when you needed money down to purchase. Feel free to visit my website www.tampabayloanofficer.com to learn more about home acceleration. I feel and want to help America to become debt free and create true wealth for families. Thanks  Will Merritt

Richard Daley  It is really sad about American values in decline!  Common sense has taken a holiday!

Will Merritt  I wish we had more pro-active mortgage folks like yourself that could work in conjunction with Realtors as a mortgage planner to map out a home buyer's strategy!  In the future our leads may come from cultivation of buyer prospects!