The mortgage loan conspiracy
What is the conspiracy?
It’s funny how through propaganda we can be manipulated to do and think things that we know don’t make any sense. Here’s a great example of what I’m talking about. We all know that debt is bad and that it impedes our retirement. We all know that debt causes financial instability. Most marriages end in divorce and finances (which is actually debt) are the main reason for this. So why do we all stand in line to buy houses so we can build debt power and security?
Let’s go back to Finance 101. What is an asset? What is a liability?
An asset is something that puts money in your pocket. A liability is something that takes money out of your pocket.
Now, let’s take a look at your house. The only thing your house is putting in your pocket is the ability to borrow more money! However, you are taking a lot of money out of your pocket! So unless your master plan is to buy a big house, live in it, sell the house when you retire, and move in with your kids (while living off the money you sold the house for), I think it’s pretty safe to say! Your house is not an asset, it is a liability!
Shut down the Mind Control Matrix. Your house is not a good investment!!
Real estate (buying a house, fixing it up and remodeling it for a profit, or buying a rental property) can be a good investment. Buying a house and living in it is not a good investment! It is a material element, like anything else. Your home equity is nothing more than a credit card with a low, fixed interest rate!
WHAT IS NET WORTH?
Here is an example of “net worth”. John has paid off the $200,000 house. Sally has paid for a $150,000 house. Assuming neither of them have money or any other debt, John’s net worth is $50,000 more than Sally’s. That means he’s $50,000 richer, right? Why is that? It’s because John can BORROW $50,000 more than Sally. Now ask yourself, does it really make sense? When our whole idea of wealth is based on how much you can borrow, NO WONDER that America is in debt!
If you go to Geechie Dan’s Place and order a 3 piece chicken meal that is $4.99. The cashier says, “That’s $5.24.” and you say, “I have no MONEY, but my net worth is $200,000.” What are the chances that he will get the food? Now, let’s say I walk into Geechie Dan’s Place and order a 3 piece organic chicken meal that is $8.99. The cashier says, “That’s $9.69.” I have $10 in my pocket, but my net worth is -$16,780,098,001.73. Guess what. I’M ABOUT TO EAT SOME CHICKEN!
NET WORTH DOES NOT EXIST!
It is a product of your imagination. You can’t buy food with it. You can’t put it on the mission plate at church. You can’t pay your medical bills with it. Net worth for most people is a number somewhere in space, based on the perceived value of material items. It only exists in your mind! You can’t spend it. The only thing you can do is borrow.
REAL WEALTH is interchangeable. You can see it. You can touch it. You can LIVE on it. Buy food, clothes, goods and services. You see, the reason 97% of Americans reach retirement age and can’t really retire is not because their net worth is low. The reason most people can’t withdraw money is because they don’t have MONEY!
The sad thing about this is that the real estate industry tells people, “Buy a house and build wealth.” The financial services industry tells people, “Increase your net worth. That’s the number you can retire at.” These are bold lies! So we Americans put all our money into what we’ve been told is an investment, and when we withdraw it, we’re left with ONE BIG CREDIT CARD!
But now, after saying all this, don’t take my word for it. Find someone who has paid off the house and ask them how rich their 30 year investment has made them!
Please read this very carefully. If you plan to retire and become financially independent, you’ll probably want to set up a game plan that provides enough money to retire at your retirement age. That is your first priority. Once you have that in place, THEN worry about buying a house! Don’t let the propaganda machine “fool” you into buying a house with an ad like this one from BS Bank Of Real Estate:
Stop making your landlord rich! Find out how to stop wasting money on rent and build a strong financial future by buying your own home!
Translation
Stop making your landlord rich! Borrow millions upon thousands of US dollars and make the US rich instead of your landlord. Build wealth (by that we mean the ability to come back and borrow more money from us). Then, when you retire and have no money, you can take out a reverse mortgage. If you die before the mortgage is up, we’ll repossess your home (which was the plan all along) or have your kids pay the rest of the interest.
Free your Mind!
LOAN POWER?
When you get a home equity loan, all you’re doing is borrowing your own money. This is the money you paid. So if you didn’t have the money to do what you wanted, then what were you doing to buy a house in the first place? You see, one of the ways that banks get rich is by having people pay them, and then turn around and borrow their own money and pay more interest. Whole life insurance is another example of this, but that’s an entirely different sermon.
AM I SAYING YOU SHOULD NOT BUY A HOUSE?
Of course, I am not. I am in favor of the property. But remember this. A house is a material item, just like a car or a big screen television. Don’t let this prevent your retirement.
There are a select few who can buy a nice home for as little as your rent payment. But nine times out of ten, to buy the house you WANT to live in, the payment will be $400 to $600 more per month (especially after taking into account maintenance that you wouldn’t have to pay if you were renting).
So let’s say the difference is $500. $500 per month is about $6000 per year. Let’s say you decided to WAIT three years before buying your house. At $6,000 per year you could save $18,000. If you put that $18,000 into an investment vehicle that earned 12% interest, after 30 years (the time it would take to pay off your house) you would have $576,000. Wait six more years and you would have over $1.1 million dollars! All this while living in the same house and without investing a dime beyond your initial investment of $18,000. All you did was wait three years and save your money.
You see, ladies and gentlemen, building wealth is not as difficult a task as we make it seem. Too easy! Stay out of debt and invest your money! But then again, we ALL know this. There isn’t a person reading this who doesn’t agree with what I just wrote, but somehow, through propaganda and psychological warfare, the diabolical have convinced us that what we KNOW to be true, is really fake. We in the United States believe that borrowing (mortgage) creates wealth and security, and that investing is dangerous. They play with our fears so that we make bad decisions. As long as you think that bad is good and good is bad, you will always be broke.
CONCLUSION
The American Dream, in the case of Home Loans, is a tool designed specifically by wealthy bankers to keep us “Just Over Broke” and “In Our Class.” Be a good manager of your money. Don’t fall into the mortgage loan trap.
[Proverbs 22:7] The rich rule the poor, and the borrower is slave to the lender.