Freeing Our Time and Money: A Boost For You and Me
In America, 30-year home mortgages are the norm. At the peak of the housing bubble, 40 and 50-year loans were cropping up. At Japan’s peak, homeowners began taking on 100 year mortgages; a debt which would then be passed down within their families. Amortizing so slowly, homeowners gather very little equity while the majority of the payment goes toward interest. With a 30-year loan, you would pay two to three times the price of your house to the bank. With a 50-year loan, it would be three to four times the price of your house, and just for the joy of disbelief, a 100-year loan would cost you four to nine times the price of your house. Just to borrow money the central bank created out of thin air anyway.
30 Year $100,000 Loan @ 5%: Total Paid: $193,256
30 Year $100,000 Loan @ 10%: Total Paid: $315,926
50 Year $100,000 Loan @ 5%: Total Paid: $272,483
50 Year $100,000 Loan @ 10%: Total Paid: $503,463
100 Year $100,000 Loan @ 5%: Total Paid: $403,524
100 Year $100,000 Loan @ 10%: Total Paid: $907,428
The uninitiated might say, “Wow, how generous of the bank to take a chance on me” without recognizing they have become a debt slave. It is no wonder that the original meaning of “mortgage” is “death pledge.” It would be much more generous for the bank to shield you from all that interest so that you could pay the loan down quickly. Imagine what life would look like if this were so. As a culture, buying, affording, and paying off a house would not be a 30 year-to-lifetime burden, but a 5-7 year plan. You could then spend the rest of your time and money on your kids, for travel, to start a business, to conduct research, for retirement, or whatever you could dream up; there would be no limits. You could work 24 hours a week instead of 40 or 50. Three days on, four days off. You could do what you wanted, not what you had to, for life. Think of how you could spend your time if you didn’t have to work thirty years to afford a mortgage and maintain an expensive lifestyle: dwell on that question for a while. Pay corrupt bankers or pay yourself: it’s up to you, so let’s explore how.
It is important to study other cultures, as often you will find our nation’s evils exposing themselves by contrast. From land to land, corruption takes different forms, as does honor. In Australia for example, the typical home mortgage is for 5-7 years. It is amortized for 30 years to establish a payment, but the loan is given in two parts. For a $100,000 loan, the borrower is given a $90,000 mortgage and a revolving $10,000 home equity line, with the agreement that the borrower deposit his or her income checks onto the home equity line for the life of the mortgage. Bills are paid throughout the month out of this account as with a normal checking account, but instead of your money sitting idle in a non-interest bearing account, it is working to shield you from the hideous interest accumulating on the mortgage.
Say you net $5,000 per month. That means half your home equity line will bear no interest, and if you don’t spend everything you make, say $500-1,000 stays in the account each month, that $10,000 loan will be repaid in a year. What do you do then? Transfer another $10,000 from the equity line onto the main mortgage. Now you owe about $80,000 and $10,000. In five to seven cycles of this process, your home will be paid off.
Every homeowner and prospective homeowner in America deserves to know about this. You can download mortgage amortization charts for accelerated pay down by joining the Ethics Underground Newsletter. This is the biggest middle finger I can think of that we can give to the corrupt rich and their debt-money banking system. The quicker we become debt free, the less vulnerable we are to the financial calamities imposed on us by those looking to centralize all power, feed off of us, and ultimately determine our fate.