Now we’re thinking right.
ING Direct, the country’s largest thrift, recently released the results of its survey made to 2,100 respondents. Aside from discovering that 67 percent still believe that homeownership is still to be pursued, it also found out that “More than four in 10 (42 percent) Americans think homes purchased with a bigger down payment in recent years could have reduced the number of foreclosures and prevented some of the current economic downturn, according to the survey. With a larger down payment, Americans can move into their new homes with a lower interest rate, reduced debt and owe less interest over time. In recent years, too many no-money-down mortgages were offered to homebuyers who could not afford to keep paying their mortgages after their homes lost significant value and the economy slowed.”
Obviously, we’d expect that a good portion of the respondents would think this way. But as banks today pose signs of going back to the 20 percent down payment requirement, many won’t still be able to afford such huge cash out, except if you have no equity in the house. For those struggling to make ends meet because of the recession, the survey would only be as good as it is – plain informative and just a marketing campaign of the bank, no more, no less.
The press release bears the title “ING DIRECT Survey: Americans Blame Low, No Money Down Mortgages For Economic Downfall”. Yet it shows that 42 percent think this way.
We suppose that the other 58 percent think that had it not been for greedy irresponsible borrowers too, we could still have prevented the downturn. Then again, it’s just our hunch.