NO ONE! will believe you about the No. 1 NWO bank conspiracy – 6% fixed rate mortgage is really a 580% variable mortgage.

There is no such thing as a fixed mortgage, it is totally bs. A “30-year fixed mortgage” is actually a variable mortgage, and the rate you really pay is higher than you can imagine and eliminates financial freedom. Nationally, homeowners keep their mortgages an average of 5 years before refinancing … that “30-yr-6%” mortgage rate is a minimum of 107%. So, if you’re a banker, you continue predatory lending and set people up then want to foreclose to be able to resell and get 580%.

In fact, the “6%” ‘fixed’ mortgage the first year is 580%. The following table shows you that since mortgages are “front-end loaded for interest” (which means you pay interest heavily over principle), you start off at 580% and the mortgage never reaches a 6% rate until the last year of the 30-year term. The last year, probably the last day. NO ONE WILL BELIEVE YOU, but it’s true.

Also, regarding the real interest rate of the loan, the 15-yr is much lower than the 30-year. The following table compares the effective rate on a 6%-30 vs. a 5%-15.

Year--------30yr mortgage --------15yr mortgage
1------------580%--------------------161%
3------------182%--------------------51%
5------------102%--------------------28%
7------------68%---------------------18%
10-----------43%---------------------11%
15-----------24%----------------------5%
20-----------15%----------------------paid off
25-------------9%----------------------paid off
30-------------6%----------------------paid off

Here’s another way to look at it, using for example, a $150,000 30-yr fixed-rated mortgage at 6%:
Yr---interest pd-------principal pd-------balance owed
1----$8,949.89--------$1,842.02----------$148,157.98
2----$8,836.28--------$1,955.53----------$146,202.35
3----$8,715.66--------$2,076.25----------$144,126.11
4----$8,587.60--------$2,204.31----------$141,921.80
5----$8,451.65--------$2,340.46----------$139,581.54
6----$8,307.30--------$2,484.61----------$137,096.93
7----$8,154.06--------$2,637.85----------$134,459.08
8----$7,991.36--------$2,800.55----------$131,658.53
9----$7,818.63--------$2,973.28----------$128,685.80
10---$7,635.24--------$3,156.66----------$125,528.59
11---$7,440.55--------$3,351.36----------$122,177.23
12---$7,233.84--------$3,558.07----------$118,619.16
13---$7,014.39--------$3,777.52----------$114,841.64
14---$6,781.40--------$4,010.51----------$110,831.13
15---$6,534.04--------$4,257.97----------$106,573.27
16---$6,271.43--------$4,520.48----------$102,052.78
17---$5,992.61--------$4,799.30----------$97,353.49
18---$5,696.60--------$5,095.31----------$92,158.18
19---$5,382.33--------$5,409.57----------$86,748.60
20---$5,048.68--------$5,743.23----------$81,005.38
21---$4,694.45--------$6,097.45----------$74,907.92
22---$4,318.38--------$6,473.53----------$68,434.39
23---$3,919.10--------$6,872.81----------$61,561.59
24---$3,495.20--------$7,296.71----------$54,264.88
25---$3,045.16--------$7,746.75----------$46,518.13
26---$2,567.36--------$8,224.55----------$38,293.58
27---$2,060.08--------$8,731.83----------$29,561.75
28---$1,521.52--------$9,270.39----------$20,291.37
29---$949.75----------$9,842.16----------$10,449.21
30---$342.70----------$10,449.21---------$0.00


About Deutsch Bank and predatory lending, see my post at www.abovetopsecret.com...


[edit on 17-5-2008 by counterterrorist]

[edit on 17-5-2008 by counterterrorist]

[edit on 17-5-2008 by counterterrorist]

Quite right. This is why financing ANYTHING is stupid. By the time you "own" your home, you've paid the bank twice what it's worth. A home is one thing, but hopefully no one who reads this forum would finance a car.

Very GOOD information to be sharing.......I had no clue. I am sure MANY people are not aware of this and its good your teaching us about this, star & flag.

I agree, star and flag.

This is really very startling, and I thank you for putting all of this into a format that we could understand. Definitely something worth sharing around with others who have no idea. As well as remind myself that I will never own a home.

If one cannot afford to pay 100% cash for such an expensive item, they are probably better off not having it. So much for the "American dream".

Oh, it's much worse than that.


The bank created the money they "loaned" out. You don't have to collect much money at all to make a profit, when what it costs you is nothing.


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. As long as everyone didn't redeem their receipts gold at the same time, 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 you receive your loan, if you deposit it into a bank, this bank can loan your loan money out again. This process can be repeated indefinitely, and if you do the math you find that much more money is on deposit in all the banks than existed in the first place. This begs the question... where did all this extra money come from? It had to come from somewhere, right? This would be true if all money were physical objects, but today money is a concept, an idea, a number. The answer is... it is created by the bank!

What does this mean?


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 by a bank.

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 and issued as loans from private banks. 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 buying the world up with is Money that isn't even real.

How banks create money out of nothing:
www.prosperityuk.com...


Money as Debt:

Google Video Link

~ Presidential Quotations ~


"If congress has the right under the Constitution to issue paper money, it was given them to use themselves, not to be delegated to individuals or corporations."

- Andrew Jackson



"History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling money and its issuance."

- James Madison



"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks will deprive the people of all property until their children wake up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.

The modern theory of the perpetuation of debt has drenched the earth with blood, and crushed its inhabitants under burdens, ever accumulating."

- Thomas Jefferson



"The Government should create, issue, and circulate all the currency and credits needed to satisfy the spending power of the Government and the buying power of consumers. By the adoption of these principles, the taxpayers will be saved immense sums of interest. Money will cease to be master and become the servant of humanity."

- Abraham Lincoln



"Issue of currency should be lodged with the government and be protected from domination by Wall Street. We are opposed to provisions which would place our currency and credit system in private hands."

- Theodore Roosevelt



"I am a most unhappy man. I have unwittingly ruined my country. A great industrial nation is controlled by its system of credit. We have come to be one of the worst ruled, one of the most completely controlled and dominated Governments in the civilized world - no longer a Government by free opinion, no longer a Government by conviction and the vote of the majority, but a Government by the opinion and duress of a small group of dominant men."

- Woodrow Wilson, in remorse of signing the Federal Reserve Act



"The real truth of the matter is, as you and I know, that a financial element in the large centers has owned the government ever since the days of Andrew Jackson."

- Franklin D. Roosevelt



"Whoever controls the volume of money in any country is absolute master of all industry and commerce."

- James A. Garfield



"The modern banking system manufactures money out of nothing. The process is perhaps the most astounding piece of sleight of hand that was ever invented."

- Major L. L. B. Angus



"By this means government may secretly and unobserved, confiscate the wealth of the people, and not one man in a million will detect the theft."

- Lord John Maynard Keynes - "Economic Consequences of Peace"



"I am afraid that ordinary citizens will not like to be told that the banks can, and do, create and destroy money; and they who control the credit of the nation direct the policy of governments and hold in the hollow of their hands the destiny of the people."

- Richard McKenna, Chairman of Midland Bank London



"When you or I write a check there must be sufficient funds in our account to cover the check, but when the Federal Reserve writes a check there is no bank deposit on which that check is drawn. When the Federal Reserve writes a check, it is creating money."

"Putting it Simply" - Boston Federal Reserve Bank



"Of course, banks do not really pay out loans from the money they receive as deposits. If they did this, no additional money would be created. What they do when they make loans is to accept promissory notes in exchange for credits to the borrowers' transaction accounts. Loans (assets) and deposits (liabilities) both rise by the same amount."

- Chicago Federal Reserve booklet “Modern Money Mechanics”

Yah... I just wish someone would have explained that mortgage/interest breakdown by the OP, or simply showed it to me like that, about 6 years ago I never would have bought this place, now I'm trying to get out... just as 'they' hope for.

Those trying to 'swindle' you into buying a house certainly aren't just going to tell you about this, as they should. I'm not sure how they sleep at night. Realtors, loan officers, etc... all just a bunch of 'Mr. Hanky's' in my book.

[edit on 5/17/2008 by RabbitChaser]

"Banks lend by creating credit. They create the means of payment out of nothing."

- Ralph M. Hawtery, British Secretary of Treasury



"If all the bank loans were paid up, no one would have a bank deposit, and there would not be a dollar of currency or coin in circulation. This is a staggering thought. We are completely dependent on the commercial banks for our money. Someone has to borrow every dollar we have in circulation, cash or credit. If the banks create ample synthetic money, we are prosperous; if not, we starve. We are absolutely without a permanent money system. When one gets a complete grasp upon the picture, the tragic absurdity of our hopeless position is almost incredible - but there it is. It is the most important subject intelligent persons can investigate and reflect upon. It is so important that our present civilization may collapse unless it is widely understood and the defects remedied very soon."

- Robert H. Hemphill, Federal Reserve Bank of Atlanta



"While economic textbooks claim that people and corporations are competing for markets and resources, I claim that in reality they are competing for money - using markets and resources to do so. Greed and fear of scarcity are being continuously created and amplified as a direct result of the kind of money we are using. For example, we can produce more than enough food to feed everybody, and there is definitely not enough work for everybody in the world, but there is clearly not enough money to pay for it all. In fact, the job of central banks is to create and maintain that currency scarcity. Money is created when banks lend it into existence. When a bank provides you with a $100,000 mortgage, it creates only the principal, which you spend and which then circulates in the economy. The bank expects you to pay back $200,000 over the next 20 years, but it doesn't create the second $100,000 - the interest. Instead, the bank sends you out into the tough world to battle against everybody else to bring back the second $100,000."

- Bernard Lietaer, Former Central Banker



"Banking was conceived in iniquity and born in sin. Bankers own the Earth. Take it away from them but leave them the power to create money, and, with the flick of a pen, they will create enough money to buy it back again. Take this great power away from them and all great fortunes like mine will disappear, and they ought to disappear, for then this would be a better and happier world to live in. But, if you want to continue to be the slave of the bankers and pay the cost of your own slavery, then let the bankers continue to create money and control credit."

- Sir Josiah Stamp, President, Bank of England (2nd richest man in England)



"I am afraid that ordinary citizens will not like to be told that the banks can, and do, create and destroy money; and they who control the credit of the nation direct the policy of governments and hold in the hollow of their hands the destiny of the people."

- R. McKenna, Chairman, Midland Bank London



"The actual process of money creation takes place primarily in banks. Bankers discovered that they could make loans merely by giving their promise to pay, or bank notes, to borrowers. In this way banks began to create money. Transaction deposits are the modern counterpart of bank notes. It was a small step from printing notes to making book entries crediting deposits of borrowers, which the borrowers in turn could 'spend' by writing checks, thereby 'printing' their own money."

- Modern Money Mechanics, Federal Reserve Bank of Chicago.



"The Illuminati bankers rule the world through debt, which is money they create out of nothing. They need world government to ensure no country defaults or tries to overthrow them. As long as private bankers, instead of governments, create money the human race is doomed. These bankers and their allies have bought everything and everyone."

- Henry Makow



"The Colonists would have gladly borne the little tax on tea and other matters, if it had not been that they took from us our money — which created great unemployment and dissatisfaction. Within a year, the poor houses were filled. The hungry and homeless walked the streets everywhere. The inability of the Colonists to get the power to issue their own money, permanently out of the hands of King George III and the international bankers, was the prime reason for the Revolutionary War."

- Benjamin Franklin




[edit on 18-5-2008 by ianr5741]

Banking is a shell-game. A scam. A con.


Every one of you knows it, deep in side. You FEEL it when you walk into a bank.


There are lies going on in there. There's a sense of corruption, power, greed, and evil behind the smiling mask.


And we don't even see the faces of the real masters when we walk in there. Just their servants, paid with their slightly above average livelihoods.


The ironic thing is that all of us would be living much better if everyone wasn't working so hard to feed the monster called "compound interest".


Money is how the rich disguise slavery.




[edit on 17-5-2008 by ianr5741]

Ever wonder how the Federal Reserve got started? Here's the story:

Google Video Link

Compound Interest...two of the most misunderstood and evil words in the English language.

I was highly skeptical of this until I started running the numbers in excel myself. A 30yr mortgage at 5.30405% is pretty much a 100% interest rate. Meaning in the 30 years you will pay for the principle twice. You can use that rate as a benchmark when you are thinking "How much will this loan cost me?"

It gets worse, any refinance in which you extend the period is a loss. If you refine a 6% interest loan at 5% but extend the period by 5 years you end up paying around $6,000 more over the course of loan.

In high school, I remember being taught how to calculate compound interest for savings but never to calculate mortgage rates. Also, in order to use Excel to calculate mortgages you have to use an Add-In that is always installed but disabled by default. Hmm.

Try searching the web for information on how to calculate mortgage rates - it isn't easy to find at all. While there are tons of "calculators" on the web, very few of them give you a breakdown of how much you are paying and where it goes. Instead they just tell you what your monthly payment will be.

As Lewis Black once said about economics, "Are you trying to keep this stuff a secret?!"

Yes Lewis, they are.

Jon

correct me if i'm wrong (this isn't really my area), but this is the case if you only keep the loan 5 years, yes? i.e. because you're battling the interest building in opposition to your payments.
though if you keep the loan for the agreed 30 years, you do indeed pay 6% per year. 180% of the initial amount of the loan, at the end of the 30 years.
im not sure (beyond paying interest on money that doesn't exist) how this is deceiving?

reply to post by verbal kint

---

I`m no expert so I`m unsure how to break it down as the op and so many other bright individuals on this thread have. But I can assure you that you will be paying well over 180% of the amount financed if you make all monthly payments for 30 years.

I use to have a mortgage on my previous residence and with an interest rate of 5.875% I figured after all payments being made I would have paid almost 300% of the original amount borrowed.

So if you can understand how the op has arranged his table you can see he is absolutely correct in his claims of what actual percentages you will be paying will be.

I fail to see where you are getting this 580% from... can you please show your calcuations? Even if you are taking future value vs present value into account, there is still no way it should be that high. Yes you are going to probably end up paying more than double the original value of the item you are financing, but 580% per year?

Your second table appears to be correct, but I have no idea where these giant percentages in the first table are coming from.

I took 2 finance courses and majored in accounting and I don't see where any of these numbers are coming from. Detailed calculations please.

[edit on 5/17/2008 by Yarcofin]

okay this all just went over my head.. it seems quite complicated.

why do they make it hard to just simply get a house and just live?
shelter is a must have for every human. I really hate how they pretty much take advantage of the fact we NEED somewhere to live, so it's like we have no choice. sure you can live in a cheap apartment but that gets old after a while. not everyone wants to live in "the hood" forever. Hearing these things kinda freaks me out about when it comes time for me to get a house etc. I JUST hope i make enough.

reply to post by csulli456

---

the total amount of interest paid in his table roughly 175,000. On a loan of 150,000. That's about 120%. Divided by 30 you get - 4. So the table is showing only 4% interest. Granted you are paying the loan back as well. For a total of 220%. Regardless, only 120% is interest (over 30 years). Which is 4% yearly. I don't see the problem?

I think he got the calculations wrong. After making yearly payments of around $10,700 for 30 years it totals around $325,000.

Basically the bank makes about 100-110% return on "their" money after waiting for 30 years.


[edit on 17-5-2008 by EarthCitizen07]

reply to post by counterterrorist

---

You're missing one key fact. The banks state up front that th e loan is 6% Annual Percentage Rate (APR). You pay 6% on the full amount for every year that you have the money. There's nothing hidden about this fact.

I'll give you that the money they loan you is just pretend money, but the rate they charge you is not a mystery.

Yeah this is true, but I knew that when I signed on the dotted line. I knew I would be paying over double the asking price over thirty years (actually I think it was like 300k for a 100k loan), however who was going to loan me the money and not make money off the deal? I mean I bought a house in the 90's for 125k and only had 25k to put down, had I waited till I had the whole 125k the house would of been worth $365k which is what I sold it for 8 years later in 05.

Just because it seems I made a 240 profit - I didn't I made over 90k in payments and then the dollar was worth less when I sold it. Making a profit is mostly an illusion, however - my living expenses are reduced because I got it back. I got back out of it what I put into it. Had I rented all that money would of went into someone else's pocket. Instead of giving your money away renting, buying a home allows you to keep it by building equity - even folks that are negative now because they bought too high - it will eventually turn around for them over time.

Are the Banks robber baron's, Yes they are - but what option do we have? Don't forget they're taking a risk and they don't always make money as we now know.

Oh, yeah and don't forget if you make an extra principle payment every month you're thirty year loan can be paid off in half the time and you won't pay as much interest.


[edit on 17-5-2008 by verylowfrequency]