The "New Normal"
If you are like me, you have become sick of hearing about the "new normal". Basically, this is a new catch phrase for having less money than you did before the recession. Most of us have had to tighten our belts, avoid impulse purchases, eat out less, and view clothing as a neccessity as opposed to a luxury.
Unfortunately, many of our extravagances were financed by the equity in our homes...vacations, new cars, you know the drill. Now our homes are worth less than they were pre-2007, with little chance of regaining that lost appreciation in the near future. The good news is we are all in the same boat. The loss we may take on our current home is made up on the next, so we are all sharing the pain.
The other factor in the equation is that interest rates are at historic lows, so money is cheap to borrow. I have read much in the press lately that mortgages are difficult to get, but I have not found that to be true. As I said yesterday; if you have a job, a small down payment, and good credit, you can buy a house. It may not be your "dream palace", but it beats paying someone else's mortgage....renting.
Have a great holiday weekend dear readers...I promise this is my last rant on this particular subject.
Unfortunately, many of our extravagances were financed by the equity in our homes...vacations, new cars, you know the drill. Now our homes are worth less than they were pre-2007, with little chance of regaining that lost appreciation in the near future. The good news is we are all in the same boat. The loss we may take on our current home is made up on the next, so we are all sharing the pain.
The other factor in the equation is that interest rates are at historic lows, so money is cheap to borrow. I have read much in the press lately that mortgages are difficult to get, but I have not found that to be true. As I said yesterday; if you have a job, a small down payment, and good credit, you can buy a house. It may not be your "dream palace", but it beats paying someone else's mortgage....renting.
Have a great holiday weekend dear readers...I promise this is my last rant on this particular subject.
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