I am a first time home buyer and shopping for home mortgage loans.
Does all banks allow us to buy points upfront to lower our interest ?
If its a 200K loan.
Do we really save paying more in interest in long run by buying the points upfront ?
Banks would love you to pay more points up front, because paying points is paying interest in advance to make you think you are getting a lower interest rate (an illusion).
The total cost of the loan over the full term is probably the same either way, points plus lower interest rate vs. more down payment and higher interest rate for a smaller loan. So over the long run points do not help you unless it gives you a tax advantage.
here here brother, the writing is one the wall.
People better wise the #$%^&* up !
– The Problem –
This is an attempt to state it simply, because if you understand the problem, then you’re going to see the solution clearly as well. If it doesn’t make sense the first time you read it, try reading it again. Eventually, the whole picture will sink in…
A quick history of money
1) Once, gold and silver were considered the only ”real” money, but it was heavy and risky to carry around…
2) So people paid goldsmiths to store the money, and got paper receipts for it…
3) After a while, people used the receipts like money, and left the gold in the bank most of the time. So the bankers got clever and came up with a scam…
4) The banks printed off receipts for more gold than they actually had, and ”loaned” those receipts out to charge interest on it. They had to keep the truth about how much gold they really had a secret and hope that not too many people would ask. This let them make a lot of money charging interest, because they could charge interest on MONEY THEY DIDN’T HAVE.
An analogy can be made using property and titles. Here’s the scam in another way:
Step 1: Acquire a vacation home,
Step 2: Sell the title to the home to one person,
Step 3: Sell the title to the home to a DIFFERENT person,
Step 4: Hope they both don’t show up on the same weekend!
Fractional reserve banking lets a bank say to a depositor that all his money is safe and sound at the bank, while at the same time they get to loan most of it out to someone else to charge interest on it. So there are two people with a legitimate claim to the same pile of money. So whose is it, really? And where is it?
It gets stranger: when a borrower gets their money, it will end up deposited into a bank as well. This money then becomes backing for another loan, and that loan gets deposited, becoming backing for yet another. If you do the math, you will see that far more money is on deposit in all the banks than existed in the first place! Where does all this money come from? The answer: It is simply CREATED. Since money is not gold, but only paper, banks can ask the Federal Reserve system to just make more!
The story of the vacation home is a good analogy of how banking works today, except for one important thing: there is no home. Without gold, silver, or some other commodity backing it, we have all been trading titles to property that doesn’t exist! Paper backs paper, and all they represent are promises to pay. This is the reality of money, and is quite different from how most of us expect it to be.
What’s the result?
1) Loaning money while claiming it is still on deposit increases the money supply, essentially creating more money (otherwise deposits would vanish). In essence, for the bank to have your cake and loan it too, it must create more cake. This increase in money supply is the cause of inflation.
2) Almost every dollar that exists is owed to a bank somewhere, because at some time in history, it was created when it was loaned out.
3) The amount of money owed to banks is more than all the money in existence! So we cannot possibly get out of debt under this system. The bulk of this debt is in the form interest, which is an arbitrary amount of money banks demand in return, but never gave.
4) There is no money, in the real sense. Just checks, data stored on computers, and promises. It is all created by typing on a keyboard, and signing signatures. The only tangible assets in regard to money anymore is the collateral we pledge when we ask for a loan. The money they loan you comes from nowhere, but the assets you lose in foreclosure are real!
5) Because the US government borrows from the Federal Reserve, bankers have the power to influence our society and government by controlling finance. They decide to create (or not create) money depending on who’s asking, and for what. They choose what projects get funded, and let other needs wither on the vine by starving them of working capital. This subtle yet immense power is more than enough to undermine democracy, and guide the course of a nation’s history.
So what’s the solution?
Simple. The public must demand that money must not be created by loaning it into existence. It must be something that is openly and publicly controllable, issuable, accountable, and interest-free. Otherwise, a class of parasites will rise to power in society by cleverly disguising the fact that the money they are creating, spending, and controlling us with is MONEY THAT ISN’T EVEN REAL.
yoor beens looooooooooool !!
Hi, I’m an admin for a group called suburbanality – enjoying holiday stress one day at a time, and we’d love to have your photo added to the group.
Interesting!! Consider posting this photo on: http://www.flickr.com/groups/beatingdebt
Hi, I’m an admin for a group called Great Recession, and we’d love to have this added to the group!