NEWS

WIRES

OTHER

ING DIRECT Survey: Americans Blame Low, No Money Down Mortgages for Economic Downfall

WILMINGTON, Del. - (BUSINESS WIRE) - Despite the mortgage crisis, two-thirds (67 percent) of Americans agree that homeownership is still an "aspirational" symbol of the American Dream, according to a recent ING DIRECT survey. But as lower housing prices are prompting Americans to revisit the housing market, the new survey also shows a lesson learned from the mortgage meltdown: save for a down payment.

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.

"Owning a home is an opportunity, not an entitlement," said Arkadi Kuhlmann, President of ING DIRECT USA. "Sadly, that message has been lost in translation over the past several years. Don't trade your future for the instant gratification of owning a home you can't afford in the long run. It you want to own a home, save for it, and our survey shows that Americans agree. "

With low mortgage rates, more than 40 percent of American homeowners with a mortgage may refinance this year, according to the survey. Homeowners surveyed also indicated that they are seeking new options from the 30-year mortgage product. Nearly four in 10 (37 percent) Americans said they are likely to consider a mortgage that allows borrowers to make bi-weekly mortgage payments at no charge. Making payments every two weeks instead of once a month allows homeowners to pay off their mortgage faster.

"For a saver, there is nothing more rewarding than finally becoming mortgage-free," said Kuhlmann. "Americans want home loans that eliminate years of payments and give them the freedom to own their homes sooner."

For borrowers who have saved their money and want to own their home, ING DIRECT offers the Easy Orange mortgage. This mortgage product is for Americans who have built up a healthy down payment, are serious about paying off their mortgage quickly, and want to save thousands of dollars with a low interest rate and low closing costs.

The national online survey was conducted within the United States by Harris Interactive on behalf of ING DIRECT between May 20-22, 2009 among 2,122 adults age 18+, 1,514 of whom were homeowners. No estimates of theoretical sampling error can be calculated; a full methodology is available.

About ING DIRECT

ING DIRECT, the nation's largest direct bank and largest thrift, is dedicated to inspiring Americans to become a nation of savers. Since its inception in 2000, more than 7.7 million Americans have entrusted their savings with ING DIRECT, building the bank to $91.4 billion in assets. For more information about ING DIRECT visit www.ingdirect.com and for information on its financial education website visit www.orangekids.com or call 1-800-ING-DIRECT.
Style note to Editors: ING DIRECT is always capitalized and never referred to as ING.

Media:
ING DIRECT
Steve O'Halloran, 302-467-6643
sohalloran@ingdirect.com