United States Consumer Mortgage Refinance

What is required is a coordinated offensive by the international working class on the basis of a socialist and revolutionary program that aims to reorganize the global economy to meet social needs rather than the profit imperatives of the various national elites. 

Next you’ll want tax payers to pay for roads, schools, police, safety regulations, and a standing army. Before you know it, we’ll be paying somewhat more in taxes and have to suffer with standards of education, life expectancy, happiness, and healthiness that might begin to compare with countries in Western Europe.

With God’s grace and appropriate financial planning and right timing, we were able to trim our 30 yr mortgage down to 10 yrs. I’m 35 & my wife is 32 and three years ago we took out a 30 yr mortgage @ about 6.5%. Two years ago when the rates were falling, we refinanced a 20 yr mortgage @ 5.75% fixed with a little extra down, which we were planning to put towards a onetime payment anyway.

Then year ago the rates fell again and we took advantage and refinanced a 15 yr mortgage @ 4.75% fixed again with a little extra down. We weren’t worried about the closing costs as they were minimum and when you refinance and plan appropriately you don’t pay for a full month, which is how much the closing cost would sum up to be. Lastly, about 3 months ago, we shopped around again and refinanced again and got a 10 yr mortgage @ 3.75% fixed with no extra cash down.

In each refinance, our mortgage payment did go up by $100 to in the end $450, but each month we used to make extra payment, which covered the payment that went up. So, the way we figured our payments really did not go up at all. Today our extra payment is $50/month, instead of $500 three years ago.

The bank also allowed us to make a bi-weekly mortgage, which cuts an additional year down to 9 years. Bottom line, if we make an additional payment to payment and a half every year, we WILL pay off our mortgage in 8 years. I know that we’re on a fast track, but our goal is to pay off our mortgage before my wife turns 40 so that we are not financially burdened and can focus on our children instead of constantly worrying about our finances.

For every comment here that’s started with “buy a house with cash”, there is a thumbs down. I don’t understand that at all. Why would you want a mortgage if you could afford to pay cash?? Forget about the so called ‘tax break’. It’s not worth it if you can pay cash and the government will soon see this ‘break’ go the way of the dinosaur anyway. I agree with those commenters who say, ‘PAY CASH’. Refinancing, with all the costs it incurs, ends up being a bigger bill to pay back to the bank. Taking out money to do repairs and the like really does end up enslaving the borrower even further to the lender.

Of course, if you can’t afford to pay cash then getting a mortgage is the sole option BUT if you CAN afford to pay cash, assuming that the house is well priced and in the best location for school and work access, why wouldn’t you?? If owning a home is important to you and you did your research when purchasing, you can always sell the house and get your money back.

I own my own house – the bank doesn’t – and because I bought it at auction in a good area, the value will never drop below what I paid for it unless something of biblical proportions happens. For those who want to put their money into something else, I also see the value now in renting. It all comes down to what is important to the individual. Those who gave thumbs down to the commenters who advocate paying cash for a house must all be employed in the finance industry. I can’t think of any other reason for the thumbs down.

The driver of the U.S. economy is the consumer. Consumer spending accounts for 70% of the nation’s GDP. And the consumer is down and out.

Americans have lost 40% of their wealth in the past two years. More than $4 trillion in credit lines will have vanished by year-end. The real unemployment rate (unemployed, discouraged and part-time workers wanting full-time work) is roughly 20%; and weekly work hours and wages are stagnant. In short, most consumers have no extra income to spend.

The prerequisite for the nationalization of the banks and their subordination to the needs of society is an independent political movement of the working class on the basis of socialist policies. It is a question of state power. No capitalist government can or will carry out this task. What is required is a political and revolutionary struggle to establish a workers’ government.