Joe's Money

One of the key indicators of the housing market is the corresponding loan rates.  Over the last week, the average rates dropped back into the 5% range.

According to Freddie Mac’s weekly report, the 30 year average mortgage rate dropped back to 4.87%.  This is the lowest rate seen since May of this year.  Mortgage tracker BankRate.com also noticed a drop in rates, but not quite as large as Freddie Mac.  BankRate.com sees the average rate at 5.22%.  15 year rates are even lower at 4.64%.

Also this past week, congress has been working to extend the $8,000 first time home buyers tax credit.  This should help would be home buyers jump into an already excellent buyers market.  Currently, the tax credit is set to expire November 30th.

Home owners last year definitely took advantage of the credit.  Last year the average 30 year mortgage weighed in at 6.2%.  To show the savings on these rates, consider this.  A $200,000 loan at last years 6.2% would show a monthly payment of $1225 while the same $200,000 loan at todays rates would save you about $125 per month.  Not bad!

These low rates helped boost mortgage applications last week.  Applications were up over 16%.

Well, guess what?  I’m not.  I read an article the other day detailing how banks are “evil.”  If I hear the word evil again, I’m going to drive my car off a bridge.  Society kills me.  There is no personal accountability anymore.  Everything is someone elses fault.  I don’t buy it.

It sounds like people have completely forgotten that banks are a business.  The teller behind the counter, gets paid.  I know, this must be shocking news to you.  It turns out that the bank has to make money to pay this person.  Another shocker, I know.  So why it that when you found out they charged miscellaneous fees, they are the most evil people in the world?  100% of these fees can be avoided, if you are accountable for YOUR actions.

The article basically goes through and calls out the banks for their high fees on overdrafts.  At the end of the article, there is a section where users can post their responses, very similar to this blog.  I was in hysteria after reading the comments.

One reader comments “These outrageously high bank overdraft fees are just another example of the financial system profiting from the unfortunate.”  I find this completely ridiculous.  Here’s an idea, stop writing bad checks.  The argument the fees are too high is completely irrelevant.  I don’t care if the fees are $.02 or $500 per transaction.  At the end of the day, if you had enough accountability for your finances, guess what, the fees would have never been incurred anyways.

Ways to avoid overdraft fees:

1.  Keep a check register
2.  Keep an extra couple hundred dollars in your account.  If you don’t have a couple hundred dollars extra, get a budget.
3.  Don’t even use a bank.
4.  Use cash or a prepaid debit card.  No one is forcing you to bank.  If you don’t have enough accountability for your OWN finances, stop using banks.
5.  Be accountable for your own actions.

Another reader comments about how banks constantly screw him over by processing debits before credits.  Again, this shouldn’t matter.  If you had control of your finances, this would not be an issue.  Many of the readers write of the constant barrage of overdraft fees.  You know what this shows me, not that the fees are insane, but that you have been “screwed” time and time again but have learned absolutely nothing for the “crazy” fees.  So not only do you leave yourself susceptible to the banks “evil” practices, you know so much about how they work to “screw the little guy” you have actually learned the ins and outs of how the bank works yet have not taken an even fundamental step to correct this wrong doing that is being thrown upon you.

Get real people.  You can point the finger all you want but at the end of the day, if the finger isn’t pointing right back at yourself, you’re never going to change.  Its up to you and NO ONE else to fix this.  Your money mistakes and problems are no ones fault buy your own.  The bank didn’t open the account without you asking.  In fact, you probably had to get in your car, drive there, fill out an application, and make a deposit.  The credit card company didn’t send you a credit card without you signing up.  Sure, they advertise, but YOU took action to do this to yourself.  If I ate fast food 3 times a day, 7 days a week, and got pissed off that I weighed 400 pounds, I sure the hell wouldn’t be saying the fast food chains are evil.  They post the nutrition facts in the restaurant stating the burger has 800 calories.  If you’re too lazy to read that, its no ones fault but your own.  Its just as easy to stop over drafting as it is to stop eating double cheese burgers and uber grande size fries everyday.

Cliff notes of the article:  Overdraft fees didn’t break you, you broke yourself.