Guest Post by Martin Armstrong
Have you ever noticed a decorative eagle plaque above a home in America? This was once a popular symbol back in the day to symbolize freedom from mortgage payments. Homeowners would adorn their houses with this symbol to indicate that they were free from the bank and owned their home free and clear. Around 40% of owner-occupied homes have been paid off, further adding to the housing inventory crisis.
The 2022 Federal Housing Finance Agency reported in 2022 that 84% of outstanding mortgages locked in a rate below 5%, while 63% secured a rate at or below 4%. Mortgage rates surpassed 8% last week and those who own are unlikely to sell. While some point to double-digit mortgage rates in the past, it was not difficult for buyers to put down 40% upfront since housing prices were low in comparison to wages. This was also a time when the cost of living supported a traditional lifestyle where only one partner was required to work.
Although COVID and low rates created strong demand, the underlying issue is the Great Reset. Institutions are set to own 40% of all single-family rentals by 2030, precisely on time for Agenda 2030. Regular buyers have been outbid by institutions coming in with cash payments. BlackRock is now the largest landowner in America. This is all by design. They do not want people to afford a home because then there would be no need for 15-minute cities, and forever renters living in ADUs. The inventory issue will not recover because no one can outbid the institutions who do not need to borrow money.
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After my grandparents passed, I tried to remove their eagle from over their door and despite being careful , I broke it however a very clean break. I never knew what it symbolized. I put it away and plan to repair it one day.
Heh, in 2012 I “bought down” my interest rate to 1.5%. Was my 2nd home purchase after a somewhat ‘contentious’ divorce. Been paying double payments ever since and once I complete this latest job move, with a somewhat substantial raise, I’ll be moving that up to triple payments. The quicker I move out from under ‘bankster’ debt, the better. Now just gotta figure out how to get out from under ‘GovCo’ debt. That one’s quite a bit trickier since they keep moving the goal posts. LOL
(BTW, that last sentence was snark, I know there’s no way to get out from under GovCo debt. We’re all debt slaves now…..for’evah and ‘evah…..amen.)
Just Sayin’
Understanding the difference between your two legal statuses is key.
You are at once a living flesh and blood human, and an “ALL CAPS” corporation.
The only legal way for you to conduct business with an “ALL CAPS” corporation is via your “ALL CAPS” corporation name.
Your flesh and blood human name is written like this:
John-Quincy; Jones
Your corporate fiction is written like this;
JOHN QUINCY JONES
YOU are in charge of when, where, who and how you desire to use your corporate fiction.
If you allow others to force you to do business, you will always be a victim.
You sovereigns explain this stuff clear as mud. Vodoo?
What’s a “sovereign”?
I simply studied law and uniform commercial code.
How? By reading tens of thousands of pages of laws and codes. Local. State and Federal.
By studying legal definitions.
Everything is a contract.
Offer.
Acceptance.
Decline.
Revoke.
Honor.
Dishonor.
I have zero adhesion contracts.
Things that have resulted from this fact:
I never get junk mail.
I never get spammed.
No Calls. Texts. Emails. Offers.
I’d like to learn more about this please.
Start by studying legal definitions.
If your state has its laws/codes posted online, there will be a page of definitions for each.
For example at:
https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=VEH&division=1.&title=&part=&chapter=&article=&nodetreepath=2
Where you will find definitions like this:
260.
(a) A “commercial vehicle” is a motor vehicle of a type required to be registered under this code used or maintained for the transportation of persons for hire, compensation, or profit or designed, used, or maintained primarily for the transportation of property.
(b) Passenger vehicles and house cars that are not used for the transportation of persons for hire, compensation, or profit are not commercial vehicles.
This subdivision shall not apply to Chapter 4 (commencing with Section 6700) of Division 3.
(c) Any vanpool vehicle is not a commercial vehicle.
_________
Federal Codes
(6) Motor vehicle.—The term “motor vehicle” means every description of carriage or other contrivance propelled or drawn by mechanical power and used for commercial purposes on the highways in the transportation of passengers, passengers and property, or property or cargo.
https://uscode.house.gov/view.xhtml?path=/prelim@title18/part1/chapter2&edition=prelim
LOL ! 30 year fixed @ 18% in 1981. But houses did cost less back then.
I have ZERO debt now…thank God and my hard work and frugal ways. I feel sorry for young people now, it’s a bitch to just pay rent now for most , let alone raise kids.
https://fred.stlouisfed.org/series/MORTGAGE30US
If you’re into house debt, make it your life’s purpose to pay it off ASAP.
The savings you’ll realize will be thanks enough, and the money you save will be spent on other pleasures…
Getting free of the banks is one thing. Getting free of the land rent is quite another.
Abolish the state. Property taxes are feudalism.
Property is taxed if it is allowed to remain under a taxable status.
Property becomes taxable when a mortgage is placed on it.
When the mortgage is paid off it is up to you to record the correct tax free status
Dot gov has zero motive to do it for you.
But don’t pay it off if you have a very low interest mortgage, that’s an asset…
If you don’t pay it off you can not record it as PRIVATE and lose the tax assessment.
Bullshit. After the fake money house of cards collapses, “institutions” will be as worthless as Bud Light. You will buy real estate at 5 cents on the dollar from these clowns with your hard money.
We got a HECM (Home Equity Conversion Mortgage, aka “reverse mortgage”) in 2021. So we don’t have any mortgage payment anymore–we are obligated to pay real estate taxes and homeowners insurance.
Now these mortgages are not for everyone, but for our situation, it was a lifesaver and made perfect sense.
The original “note” was for 1.99% but it’s adjustable, so of course it has risen now to 6.95% which is the cap; however, we also got a line-of-credit for around $100k, which accrues interest at the same rate of the note, so we’re getting around $500 a month added to the LOC. And because the LOC is technically a loan, there is no income taxes on the interest.
Neither the mortgage or LOC have to be paid back after the remaining spouse dies, thus ending the HECM, which is guaranteed by HUD. At that time the house can be sold by the heirs and any remaining equity is theirs.
We have more equity now than before getting the HECM, and access to the $100k LOC which can be used for any purpose we want. Of course any draw against the LOC increases the loan balance–think of it like a credit card where the money is available to you except in the case of a HECM LOC, you don’t have to pay it back.
Payments on the loan can be made should we choose, and we can “prefund” the LOC as well to take advantage of the interest rate if desired. So if I moved $10k from a savings account into the LOC, it would earn 6.95% and after a year I could withdraw the ~$700 and not suffer any penalties and the LOC would be unchanged. That’s tax-free $700.
There will still be plenty of equity to pass to our grown child when we pass away, so this is a win-win for us.
Oh, if you’re wondering, if the home is somehow under water at time of death, the heirs are not responsible for the difference. There is mortgage insurance built into the HECM.
When we’re all homeless and living on the street then we can burn it all down.
You never really own your home. Rent must be paid to the government or they will take it from you.
Abolish the state’s feudalist tax system.
“You never really own your home. Rent must be paid to the government or they will take it from you.”
Maybe….
That’s because when you pay off the loan you never went back to the county and had your property properly assessed as PRIVATE.
All property, is by nature “PRIVATE” until a bank loan is made against it.
Then it is temporarily transformed into one of the taxable statuses such as residential, commercial, industrial etc.
Private property is not taxable. Period.
Full stop.
I’m glad I never needed or took out a mortgage, even if the wife and I did it the hard way. Blackrock, Vanguard or their Canuckistan equivalents will never own my house. Ever. If I could only do something about that pesky and extortive property tax, though. BTW it’s one of these, but purchased in 2016 for exactly 1/2 this current price:
https://www.livabl.com/ottawa-on/trailsedge/house-plan–arden