I recently suggest to one of my very best friends that he call Quicken Loans to refinance his Adjustable Rate Mortgage to take advantage of today’s great deals on 30 year fixed rates…they are under 5%.  I had recently done business with Quicken loans, and had enjoyed a smooth and simple refinance. 

My buddys wife calls the company to find out if they will qualify.  The agent tells her that they will, and then in my buddys’ words…”pressures her to place a $750 “refundable” security deposit to cement their business relationship.”  His wife was told that Quicken was confident they could get the loan done for them…but if they couldn’t, their $750 deposit would be refunded in full. 

OF COURSE, Quicken is not able to get the loan done as they had thought…something about the home not appraising at the level they thought it would.  No Big Deal, Right?  Just send us our deposit back and we will try to make other arraignments.  THEY WOULD NOT GIVE THEM THEIR $750 BACK!  My buddy is MAD!  He has made it his personal mission to tell everyone he knows to avoid Quicken Loans like the plague…and I don’t blame him. 

I FEEL BAD about making the suggestion.  My experience was fine.  Maybe I had a better loan officer?  Maybe I met their “perfect customer” profile?  Either way, why are they charging $750 just to get a good faith estimate?  That seems shady, especially if there is ANY chance that you may not get that money back if you get a crappy appraiser for your home. 

Is anyone else out there having trouble with Mortgage Companies?  Let me know your experience, good or bad.  After I suggested QL to my buddy, I found this resource online…sounds like they are upsetting A LOT of customers these days.

I DON’T think that it is a foregone conclusion that our country is headed for a “depression.”  A depression in economic terms is loosely defined as a countries Gross Domestic Product (GDP) dropping by about 10% or more in a given year.  WHAT I MEAN by GDP is the total value of all goods, services, and investments spend by EVERYONE…individuals, businesses, and governments…in a given year.  The GDP of the Untied States of American as just under $14 Trillion last year. 

HERE IS WHY I’m Concerned…

Our country has survived economic downturns in the past, many times in fact.  This one is different though in my opinion.  The reason is this:  Individual Americans and our Federal Government has a CRUSHING AMOUNT OF DEBT that is growing bigger and bigger every day.  The interest alone that we must someday pay on our national debt is growing rapidly and is currently estimated at $45,000 PER SECOND!!!

I read recently that 80% of Americans would potentially be bankrupt and homeless if they simply missed 2 PAYCHECKS!

The reason for this is because of the huge mortgages, auto loans, failed business loans, student loans, credit card loans, etc. that we are all required to make huge payments on each month.  AND ALMOST NONE OF US HAS AN EMERGENCY FUND that would last more than two months. 

SO WHAT CAN YOU DO?

• Stop spending your money like the village idiot!  American currently save less than 2% of their yearly earnings! 
• Quit going to the mall every time you are bored!
• Build an emergency fund!  Do this with the dollars you are not blowing at the mall.
• Buy JUNK SILVER COINS.  Do this with about 25% of your emergency fund.  Silver has proved to be a good store of value for thousands of years.
• Get rid of unnecessary debt.  And do this as soon as possible.  If you just bought an ATV and took a 12% interest loan…sell that sucker, and get that debt off your back!
• But conserve cash too!  It can be unwise in uncertain times to spend every penny of cash you have to par down your debt.  This is where the concept of EMERGENCY FUND is important!
• Stock up on some food with very long shelf life!  I’m not trying to alarm you, but if you understand the gravity of the numbers I’m just shared with you, some extra food in the basement seems attractive.
• Keep having faith and working hard!  With all the doom and gloom out there, I still believe in power much bigger than ourselves and our economic worries.  Keep focused on ALL THE GOOD BLESSINGS in your life, because they are abundant, even through our struggles.  Just look at the birds outside, they don’t seem to worry where their next meal will come from…and aren’t us people more important than the birds?  I believe we are!