If you're an aspiring 'home owner', what you're about to read will really tick you off.
If you rent, you'll discover that for most Americans, the dream of 'home ownership' is nothing but a cruel, unmitigated hoax.
Take, for example, this report on mortgages from last September:
Roughly half of all African-Americans and Hispanics who bought homes last year are paying above-average mortgage rates, a significant increase over 2004, the Federal Reserve says in a new report.
Overall, one in four home buyers took out a high-priced mortgage last year, double the rate in 2004. The sharp increase was attributed to the rising number of buyers with shaky credit who could afford only small down payments, as well as to changes in interest rates.
* * *These high-priced, or subprime, loans carry rates at least 3 points above the benchmark rate for prime loans. At today's rates, a subprime buyer of a median-priced home of $230,000 would pay at least $1,547 a month, while a prime borrower would pay $1,163, assuming the buyers could afford a 20% down payment.
"When you see that in 2005 half of African-Americans are paying higher-priced credit, it does suggest there is a drain on the wealth effect of homeownership," says Allen Fishbein, director of housing and credit policy for the Consumer Federation of America.
"There has been a lot of effort to expand homeownership, but if it translates to higher-cost financing, that effect is limited," Fishbein says. "You're not building up equity in a house if you're paying over 10% on your mortgage. It's very difficult to do."
Now, fast-forward to 2007:
Across the United States, blacks and Hispanics are more likely to get a high-cost, subprime mortgage when buying a home than whites, a major factor in a wave of foreclosures in poor, often black neighborhoods nationwide as a housing slowdown puts millions of "subprime" borrowers at risk of default.Even more troubling, real-estate industry analysts say, is an alarming proportion of blacks and Hispanics who received subprime loans by predatory lenders even when their credit picture was good enough to deserve a cheaper loan.
In six major U.S. cities, black borrowers were 3.8 times more likely than whites to receive a higher-cost home loan, and Hispanic borrowers were 3.6 times more likely, according to a study released this month by a group of fair housing agencies.
"Blacks and Latinos have lower incomes and less wealth, less steady employment and lower credit ratings, so a completely neutral and fair credit-rating system would still give a higher percentage of subprime loans to minorities," said Jim Campen, a University of Massachusetts economist who contributed to the study.
"But the problem is exacerbated by a financial system which isn't fair," he said.
In greater Boston, 71 percent of blacks earning above $153,000 in 2005 took out mortgages with high interest rates, compared to just 9.4 percent of whites, while about 70 percent of black and Hispanic borrowers with incomes between $92,000 and $152,000 received high-interest rate home loans, compared to 17 percent for whites, according to his research.
"It's a huge disparity," he said. High-cost mortgages usually have interest rates at least 3 percentage points above conventional mortgages.
Of course, it's a huge disparity.
Reports like the two I cited underline disparities between whites and people of color in order to pit different races against eachother.
But, left unsaid is that neither blacks, nor hispanics, nor whites are getting a fair deal.
Bankers are BILKING us all!
"Capital must protect itself in every way," through combination and through legislation. Debts must be collected and loans and mortgages foreclosed as soon as possible. When through a process of LAW the common people have lost their homes, they will be more tractable and more easily governed by the strong arm of the law, applied by the central power of wealth, under control of leading financiers. People without homes will not quarrel with their leaders."--from "Banker's Manifest", for private circulation among leading bankers only, taken from the Civil Servants' Year Book, "The Organizer" of January, 1934
Don't believe it? Let's break out the numbers.
Assume you want to buy a home that cost $115,000. And perhaps you are prepared to put $5,000 down, secure a thirty-year mortgage for $110,000, and pay $4,000 in closing costs. After which, let's presume your mortgage payment is $1,000 a month, and examine your real cost after only 3 years.Your entire mortgage payment (of $36,000) is mostly interest income for the bank.
Lest you forget: add in your down payment, closing costs, maintenance, improvements, and roughly $5,000 in property taxes.
All toll, you have spent $52,000 (or more) in only 3 years! That's nearly half of the original loan amount. Yet, you still have 27 years worth of payments left.
Worse still, the only thing you own is the debt on the home, your savings are probably depleted, and, most likely, you live from paycheck to paycheck.
Moreover, if you remain in your residence as agreed, you will pay the bank $270,000 to $305,000. Otherwise, if you sell early, assuming any appreciation, you must get another home and incarcerate yourself in debtor's prison, or split half of your profits with the IRS.
This is what the 'great American dream' has been reduced to by bankers - a horrible never-ending nightmare.
And the implications of this diabolical conspiracy only get worse when you realize that bankers issue money from thin air!
Something has to be done - and FAST - before bankers lay their grubby little hands on every square inch of land in this country, restricting the rest of us to lives of ignorance and misery in urban bantustans.
Submitted by qrswave on Wed, 2007-03-21 10:21
- qrswave's blog
- Login or register to post comments
- 10991 reads
-
When we borrow money to buy a house (or whatever) the bank gives us permission to pretend that they gave us money to give to the seller. The bank in fact created the money out of nothing, altered their computer records accordingly, and printed out some hard-copy evidence to support the notion that real money is now being dealt with.
Then they collect interest on "the money" until all of "it" is paid back.
Good work if you can get it, hey?
For the most part, banks don't even traffic in paper.
"Wealth" is simply ones and zeros in the computers of the international banking system.
By the way, the list price of just ONE of the new Airbus 380 models is $316 million. Meanwhile Boris Abramovich (one of the Jewish gangsters who escape from Russia) just bought Hungary’s national airline for a paltry $900k.
See
http://judicial-inc.biz/hu..ngarian_government_sells_state.htm
Fiat digital currency.
You gotta love it.
(in the UK a minority of people can get a 'welfare' subsidised rental home, which has less rent than in the private market...this is known as social housing, this is now after more than 20 years becoming a no option as no more housing is has been built for that purpose for 20 years)
By renting in the private housing market, you are usually paying someone elses mortgage for them, and you never own it, even if you live in it for 50 years. Thus it never becomes 'your asset' for you to pass onto your heirs.
The whole thing is a con, all undrpinned by the Bankers. Their system allows them to take your labour product from you...and you have no choice but to consent to this robbery.
That is right taxation is designed to keep the 'Chosen' in power and the rest 'beholden' to them and without any assets, even after a lifetime of work...very little in savings, or an estate to pass on to your heirs.
This is one of the mechanisms used by the 'chosen' to strip the indeginous elites of their property, wealth and power and to replace them with 'the chosen'.
In the UK the aristocracy which used to have big estates and Country Homes, now struggle to maintain their Country Homes and have ahd to allow the public to visit them to pay for their upkeep.
Jewish Power reigns supreme.
Good to see you!
I would hold off on any purchasing decisions, unless you can secure a very small and super cheap mortgage (so that you're not spending any more than you would to rent a place).
However, also keep in mind that should you decide not to buy now, you must be careful about keeping large sums of your savings in "cash" as they will soon be worthless.
I hear they're selling houses dirt cheap in Detroit. I know the neighborhood is lousy, but maybe we can all move there and make a fresh start - build an interest-free farming community.
Not that I know anything about farming. Maybe it's too cold up there.
---------------------------------------
"Money" has no value - people do.
It MIGHT be, under certain circumstances.
But, generally, rent in urban areas is ridiculously inflated and like leftfield notes, is almost always designed to pay the "landlord's" mortgage.
Being 'amortized', mortgage payments are primarily INTEREST.
So, basically, whether you rent or you buy - there's not much difference - you're sweat and labor goes to pay bankers interest.
The difference is in the tax 'benefits' of 'owning' as opposed to 'renting.' As an 'owner' you get to 'deduct' your interest payments and all other maintenance costs from your taxable income.
But, as drmac points out, those 'benefits' come at a pretty high price. The mortgage is guaranteed by your own personal labor.
IN other words, no matter what happens to the market, you swear to pay the bank whatever ridiculous price you agreed to pay for it when you initially bought it.
The gravity of this committment is demonstrated in what's happening now in Detroit where houses that once sold for half a million dollars are now being auctioned off for just over $100k.
Not a pretty picture.
Generally, my advice is to 'buy' the smallest house in the safest area. No one envies you and you don't overpay for your mortgage.
---------------------------------------
"Money" has no value - people do.
There's a nice, short parable titled The Money Myth Exploded which makes a good handout. It's available at
www.michaeljournal.org/myth2.htm
Excellent article QSRWAVE!
Absolutely truth and you are 100% in the LIGHT !!!
The banking scams continue! They grow and we deplete.
"I may not agree with what you say, but I'll defend to the death your right to say it"...Voltaire
Great exposure of this scam, but here is by far the worst part.
You will NEVER own your home, even if the Constitution says you "The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures,,," is tossed out the freakin window when the "property tax" bill is due. An Illegal Tax Law, as well as far too many other unConstitutional laws too varied for this thread.
Buy a home, then rent it from the local governmnets.
OK. Don't want to necessarily be lumped with all of the opinions listed here, but do want to attest to the myth of property ownership here in America in the last decade. The only percentage I can see to ownership/mortgage holding vs. renting is that you get to BELIEVE you are your own landlord to a certain extent. I'm beginning to think that there really is no such thing as OWNING anything other than the few feet you are standing on.. . . while you are standing on it. (Not just a philosophical statement, but a realistic literal statement.) I feel like I am not living in the "America" I studied in school and believed in, the "America" with its decent, hand-working values that I was raised in and that was the basis of my family's values. But that I am in Israel/Palestine or Eastern Europe -- still alive, but disposed and disenfranchised with no rights as a citizen. Actually witnessed and struggled against our "non-mortgaged taxes always paid" family property being taken over -- not by emminent domain or "the gov." -- but literally by a conspiracy of the ruthless, violent, lawless (working with lawyers) mixture of overextended "businessnessmen" and a bank which held the overdue notes on the loans to the "businessmen" (unfortunately also located in the community my family helped to build ) and who both watched like vultures the non-mortgaged, very valuable land/homes/property "just sitting there", a big fat target. There was no reason that all of a sudden -- non-involved outsiders, our family and our property -- should be sacrified to "save" the overextended blow-hard businessmen other than $amount wise it fit the bill. (One sure way to "save" your family property from predatory vultures like this is just keep it mortgaged to the max. value; then it's no interest to them -- unless you genuinely wanted to sell it; but then, AHA!, you have, to all intents and purposes. just paid a "blackmail" bribe to the bankers to keep your property "safe" from predators!) One of the crooked lawyers was on the board of directors of the bank (safely protected because his wife was one of the asst. district attorneys); the board kept loaning more non-collateralized moeny to the "businessmen" already in debt to the bank, etc., on their claims and speculations that they could "get" this land. Even though we kept telling the main guy the land wasn't for sale, they made their calculated move when our family atty. was away on vacation and one family member was in the hospital. They witnessned and notarized and filed papers that were witnessed and notarized and signed only by themselves. They flipped the property without any clear title or any money or contracts commited to every time there was an injunction hearing filed to stop them. They intimidated some "witnesses" and bribed others. They took one elderly and mentally ill person out of the hospital under false pretenses and across state lines (she sits dazed and confused in a welfare facility in another state alone and defrauded to this date). They spent several times over the amt. of $ they claimed it was worth (remember all of this without any clear legal way to prove the land was actually for sale by the legal owner) -- which was about 1/6 of the actual worth IF IT HAD EVEN BEEN FOR SALE! They had their friend, the Tax Appraiser, sitting in on every hearing to see the outcome. He also reappraised the value to lower as soon as they signed a "deed" over to themselves. They also got a loan from the bank immediately for several times what they kept claiming (contrary to appraisals) it was worth. (All this, remember, when the family involved did not even ever have intentions to sell!) Turns out several of these "businessmen" have been repeatedly sued and have "misappropriated" funds, made fraudalent "investments", etc. before. They shot off guns, killed livestock and dogs, slandered and libeled (proven in court by a jury) and threatened and intimidated anyone who dared to speak up about the outrageous actions, bulldozed houses, fences, etc., etc., against court orders, switched judges (the "final" one they ended up with was partners with a title company) successfully approx. 9 times just to get ahold of this valuable non-mortgaged property that had been in the family some of it for over a hundred years and some of it for about 50 years. So all of those generations' of sacrifice and frugal living and caring for and working this land, living honestly and fair-acting within the community, making sure the land was non-mortgaged, ended up with the real owners not receiving a penny or being able to save their home. The crooks with their plan just had to pay off, bribe, threaten and have the nerve to try to do it. This is where the trickle down of cynicism, "white collar crime", crookedness in our "judicial" & "banking" system has lead us to: The Wild, Wild Disrespectful West where whoever the biggest bully with the most "nerve" and a lot of money to launder can "take over" honest and decent people's property or wealth. Was already in the courts approx. 9 years and will probably be hammered out in court over the next few decades. One of our appeals courts staff already suggested we take it to "60 Minutes" and, I guess it will make a great movie script, but this is a real family and thier home. I cannot say that I will ever own property willingly again. It is just a big, fat target for crooks. No better than hiding your $ under a mattress and gambling you won't be stolen from. We'd have been better off with stocks. At least they could have been only stolen by hackers online.
I never thought of that, but it makes perfect sense - moneymen going after homes that are paid off - after all, why would they bother going after the ones they already own?!!
This is such a corrupt economy - economic vultures and parasites everywhere!!!
No one can make an honest living anymore or simply hold on to a modest parcel of property on which to live and raise their family without fear of being eaten alive by economic predators - whether it's through taxation of everything we need to survive - from property to milk to gas to the clothes that we put on our backs - or by outright theft through pyramid schemes legalized by state legislatures or the courts bought off and bribed by the local arms of international corporate gangsters.
Unbelievable - and all the while Americans are walking around dazed and confused as if in a drunken stupor - not knowing who they are or why they exist and struggling just to survive or to find someone to love to make their miserable existence worthwhile. There's never any time to address the core issues that are making our lives so miserable.
___________________________
"Money" has no value - people do.
Actually, even IF you paid off your house, it is still not yours. You only own the equity. If that goes to hell, you have nothing. You can not own anything when you use a debt-based monitary system, period. IF you do not believe this, then see www.ichooseliberty.org where I have posted about land patents and property ownership. It is BOOK LENGTH, broken down in several sections to either read on line or download for free.
Don't say it's not true, unless you read what I've got there. It breaks it down step by step how all the land had been stolen against the national debt, which has been rising since the days of Andrew Jackson, the last president to toss out the national bankers and restore a lawful monitary system.