Is it worth it?
We sold our house and are now mortgage free. Henceforth, I have been thinking was it really worth it? Was it worth the heartache, pain, debt, sweat, tears, and stress, just for a box made out of wood?
For starters the word mortgage is a French Law term meaning "death contract", which means that the pledge ends (dies) when either the obligation is fulfilled or the property is taken through foreclosure. Other explanations state the same, but instead of the pledge dying it is the “homeowner”, which I think is more common.
According to Zillows July 2019 data analysis, only about 37% of U.S. households are “free and clear,” meaning they no longer have a home mortgage to pay. 37% is not that good, and how many times is the same house sold over and over? Who really makes all the money? It certainly is not the “homeowner” or in most cases their beneficiaries either.
Think about it, even if the house is "free and clear" there are taxes and fees that have no purpose, but to feed the power hungry, money grabbing, banks, mortgage companies and government officials. If you sit down and really take a look at the numbers, their goal is to keep the 'homeowner" in as much debt as possible for as long as possible. Notice I use quotes around the term "homeowner"? That is because you truly never own the home or the property it sits on.
Furthermore, the taxes are never-ending and constantly rising. If you truly owned the house and property then you shouldn't have to keep paying taxes on them if and when you pay the mortgage off and you should be able to stop payment of the governments yearly rent so-to-speak and not have the house and property stolen from you.
During the time you have a mortgage the bank and / or mortgage company actually owns the house and property, not you. However, they call you the "homeowner", which makes you solely responsible for the heartache, pain, debt, sweat, tears, and stress for a big wooden box. You are essentially just paying them for the privilege to live in their house.
So far, I have avoided a 2nd mortgage in order to keep the big box of wood livable and insurable despite rising costs, fees, and taxes. However, that is not the norm, considering many “homeowners” of 1st mortgages also have a 2nd mortgages, which equates to very little, if any equity for the “homeowner”. Then when they sell, who again makes all the money? You guessed it…..the banks, mortgage company, and the government.
If my case, I crunched some numbers using our first mortgage payment, length we have paid, and didn’t count maintenance and repair costs or the rise in taxes and fees over the years. We also have refinanced to lower the payment, which keeps creeping back up anyway. So the following numbers are as if I had kept the original mortgage and kept paying on it.
Length of mortgage: 30 years.
Amount of mortgage: $125,000.00
Starting mortgage payment a month: $702.00
Length of time we have paid a mortgage: 18 years.
Amount we would have paid so far: $151,632.00
As you can see a little more than halfway through the mortgage we would have already paid back the original amount (in raw numbers), and more with another 12 years to go.
Makes you wonder who is really making all the money on your blood, sweat, and tears doesn't it? I know some people are going to point out the "tax cut" you get for the interest on the mortgage, but when it comes to the government giving you something in any way, it is not without them taking from another or getting it from you another way.
Personally, I have done some reflecting and can honestly say, for me the mortgage was not worth it. I missed out on a lot of my kid growing up, my health has suffered, and it's never enough. I am a totally different person today, than I was when we got the mortgage and have gone through below hell and back for this stupid wooden box.
Think of how much I could have in savings if I had put a “house payment” in the bank and not given it to the mortgage company. If I had to do it again and finance something I would purchase an R.V. and only rent space to park it. That way when it was paid for, I would actually have somewhere to live that I owned, no matter where I was.
Don’t get me wrong I think homeowner ship is not bad, except for the fact that you never really own your house and property if you even live long enough to pay off the mortgage. Remember, the “homeowner” will always come out on the short end of the stick financially, physically, and mentally. And until things change it’s only going to get worse. I don’t begrudge someone making money in the capitalist system, but when it gets to the point that it is at the expense of a person and / or family then it is wrong.