I dont know the correct answer to this, Im not sure what Jesus would suggest in such a situation either.Of course, the Gospel tells us to lend without expecting repayment. That’s a gospel imperative for Christians to help others. But it’s not lending in the business sense.
Would a Christian lend someone $200,000 to buy a house without expecting repayment? Or lend $500,000 in startup funds to a new business with no expectation of repayment? In some cases, an investor might actually lend to a startup without expecting repayment, but would expect a share of future profits in return for the risk.
I never said what I do in life is an example of what you should, or any one else should do. I just said it is liberating. Your life is yours if you want to live in the secular world, then my all means do so, I choose to follow Jesus Christ, it brings me great peace. To answer your question I rent, it free’s me from the obligations of home ownership. By the way, you don’t own a home just because you pay a mortgage, you rent it from the government, and you can’t take it with you… Property TaxesWould you get a mortgage to buy a home? What would you say to a married couple who want to buy a house and can afford mortgage payments but obviously not pay it all outright?
If God forbids the charging of interest, then we should not charge interest. But I have yet to see a concrete proposal of how that would work.I dont know the correct answer to this, Im not sure what Jesus would suggest in such a situation either.
We may try to justify interest as just a normal part of modern day business, but thats not a guarantee God agrees with this practice.
The ironic thing about that argument is that the availability of credit is what inflated the price of the house in the first place. People who are willing to purchase a $50,000 house for $300,000 have only themselves to blame when they get underwater. Low interest payments are of little consolation when that happens. In real terms homes deteriorate, yet in the mindset of most homeowners, they can only appreciate and that’s an illusion created by monetary policy throughout the world. Moral hazard, indeed.Would you get a mortgage to buy a home? What would you say to a married couple who want to buy a house and can afford mortgage payments but obviously not pay it all outright?
I dont think God would care too much about how much bankers are making on money they loan out, I may be wrong, but I doubt this would be a big concern for him. Its only in societies best interest to do things like this, as it keeps money flowing, people working, earning, etc. and I feel we may tend to justify it in order to maintain society, and really, we dont know how to operate any other way.If God forbids the charging of interest, then we should not charge interest. But I have yet to see a concrete proposal of how that would work.
Would it be unfair of a bank depositor to demand the bank pay interest on his deposits?
Now, keep in mind that official Federal Reserve policy is to devalue the currency by about 3% per year. If you deposit $1,000 and take it out at the end of the year, you get back only $970 in purchasing power. If you lend long term, and the borrower pays you back some time later the exact amount lent, you have a good deal less in purchasing power than you lent. How can it be just to require you to take a negative return?
I also rent now, I used to have a mortgage and pay all the related bills, but when I put pen to paper and started looking at the numbers, I found (for me) its better to rent. Heres what I found below…I never said what I do in life is an example of what you should, or any one else should do. I just said it is liberating. Your life is yours if you want to live in the secular world, then my all means do so, I choose to follow Jesus Christ, it brings me great peace. To answer your question I rent, it free’s me from the obligations of home ownership. By the way, you don’t own a home just because you pay a mortgage, you rent it from the government, and you can’t take it with you… Property Taxes
This is so true, after 10 years into a mortgage, the value of appreciation is less every year, by the home is paid off it’s worth a faction of what you paid. Uncle Sam is still getting his cut, that never stops and never decreases. Homeowner ship is an illusion. The best you can say is you, or your family might get some of your money back. But then theirs those capital gains and of course the famous death tax. The winner and still champ Uncle Sam and the banks.The ironic thing about that argument is that the availability of credit is what inflated the price of the house in the first place. People who are willing to purchase a $50,000 house for $300,000 have only themselves to blame when they get underwater. Low interest payments are of little consolation when that happens. In real terms homes deteriorate, yet in the mindset of most homeowners, they can only appreciate and that’s an illusion created by monetary policy throughout the world. Moral hazard, indeed.
The true price of a house is the material and labor costs involved including those of improvement, aside from the land value and normal deterioration. (Insurance in most cases covers only the replacement.) Even if they were to get a loan with 0% interest or pay cash for it, they are most likely already overpaying for the house. Point is that most home owners are screwed, even before usury.I bought a $120,000 house in 1998,
First, is the $950/mo the total payment including principal, interest, tax, and insurance? If it does, you need to recalculate, using the P&I amount only. Principal & Interest payment is the actual mortgage payment. Take that times 360, subtract the principal amount of the loan, and you’ve got the total interest paid.I also rent now, I used to have a mortgage and pay all the related bills, but when I put pen to paper and started looking at the numbers, I found (for me) its better to rent. Heres what I found below…
I bought a $120,000 house in 1998, my wife and I had decent jobs and could easily afford the $950. monthly payment, but a couple years later, my wife was laid off and then I was laid off from a really good job, that moved to up state New York. We then found a house to rent, but unfortunately we divorced shortly after, and went thru a year of rough times, but now we are best friends and get along great. We realized we are better at being friends than husband and wife.
OK, concerning the house payment, sorry I got a bit sidetracked, we paid $120K, payment was $950.month, for 30 years…I found we would pay $11,400 per year for the mortgage…next take that number and multiply by 30 yrs and we would have paid $342,000. for a house valued at $120,000. this did not make good sense to me, I know, interest should not be included in this, but it is still money that has to be paid each month, so I included it…I dont care what anyone says, that is usury plain and simple!!!
I know asking for a $120K loan is alot to ask for and the bank should make something on it, but over $200K in profit??? I could see around $15 or 20K profit but making $200K in profit from 1 house loan is absolutely ridiculous and should not be legal IMO.