“Owning a Home is Literally a Scam”|”30 Years Home Mortgages are the Bank’s Game”|”Other Alternatives to Pay Mortgages Payments”|Mortgage”. It literally means “dead pledge”

 

Abstract

The articles “Owning a Home is Literally a Scam” and “30 Years Home Mortgages are the Bank’s Game” shed light on the perspective that owning a home may not always be financially advantageous and can be seen as a deceptive system. The authors argue that the traditional model of homeownership, particularly through long-term mortgages, primarily benefits banks rather than homeowners. They highlight the drawbacks of long mortgage terms, such as the significant interest payments over the loan duration and the potential for homeowners to owe more than the initial purchase price due to interest accrual. The articles question the notion that homeownership is a universally beneficial investment and encourage readers to critically evaluate the financial

implications and alternatives to traditional mortgage arrangements. By challenging the conventional narrative, these articles aim to provoke a discussion about the potential drawbacks and alternative approaches to homeownership, ultimately empowering individuals to make informed decisions about their housing options.

Real Meaning of French Word Mortgage

The French word “hypothèque” is the equivalent of the English word “mortgage”. It literally means “dead pledge” in French, from the words “mort” (dead) and “gage” (pledge). This is because in the early days of mortgages, if the borrower defaulted on the loan, the lender could seize the property and sell it to recoup their losses. This would effectively “kill” the borrower’s pledge to repay the loan.

However, the word “hypothèque” is no longer used in this literal sense today. In modern French, it simply refers to a loan secured by property. So if you hear a French person talking about their “hypothèque”, they’re not talking about their own death!

Here are some examples of how the word “hypothèque” is used in French:

• J’ai une hypothèque sur ma maison. (I have a mortgage on my house.)
• Le taux d’intérêt sur les hypothèques est en baisse. (The interest rate on mortgages is falling.)
• Il a dû hypothéquer sa voiture pour payer ses dettes. (He had to mortgage his car to pay his debts.)

I hope this helps! Let me know if you have any other questions.

The traditional way of buying a home is to take out a 30-year mortgage. This means that you will be paying interest on the loan for 30 years, and you will not actually own the home outright until the end of that time.

In the meantime, you will be paying the bank more than double the original price of the home. This is because of the interest that you will be accruing on the loan.

So, is owning a home really a scam?

The Arguments Against Home Ownership

There are a number of arguments that suggest that owning a home is a scam.

You pay more than double the original price. As mentioned above, you will be paying more than double the original price of the home by the time you have finished paying off the mortgage. This is because of the interest that you will be accruing on the loan.

You are tied down to a single location. Once you have bought a home, you are essentially tied down to that location. This can make it difficult to move for work or other reasons.

You are at the mercy of the banks. If you default on your mortgage payments, you could lose your home. This means that you are at the mercy of the banks, who can decide to foreclose on your home if you are unable to make your payments.

Alternatives to Home Ownership

There are a number of alternatives to home ownership that you may want to consider.

Renting. Renting is a popular alternative to home ownership. When you rent, you are not tied down to a single location, and you are not at the mercy of the banks. However, you will be paying rent each month, which can be expensive.

House hacking. House hacking is a strategy where you buy a property that is large enough to live in and rent out the other rooms. This can be a great way to build equity in a property while also generating income from rent.

Buying a multi-unit property. Another option is to buy a multi-unit property, such as a duplex or triplex. This can allow you to live in one unit and rent out the other units. This can be a great way to generate income and build equity in a property.

Conclusion

Whether or not owning a home is a scam is a matter of opinion. However, there are a number of factors that you should consider before making the decision to buy a home. These factors include the cost of the home, the interest rates, your ability to make the monthly payments, and your future plans.

If you are considering buying a home, it is important to do your research and understand all of the costs involved. You should also consider your alternative options, such as renting or house hacking.

Call to Action

Learn more about the pros and cons of home ownership and find out if it’s right for you.

Other Alternatives to Pay Mortgages Payments

1. Rent out a portion of your home: If you have extra space, consider renting out a room or a separate unit within your home to generate rental income. This can help offset your mortgage payments and make it easier to manage the financial burden.

2. Start a home-based business: Utilize your home to start a small business or offer services that can generate additional income. This could include running a daycare, offering consulting services, or starting an online business. The extra income can be used to pay off your mortgage faster.

3. Invest in rental properties: If you have the financial means, consider investing in rental properties. The rental income from these properties can help cover your mortgage payments while also building your real estate portfolio.

4. Peer-to-peer lending: Explore peer-to-peer lending platforms that allow you to lend money to individuals or businesses in exchange for interest payments. This can be an alternative investment option that generates regular income to help pay off your mortgage.

5. Dividend-paying stocks: Invest in dividend-paying stocks that provide regular cash payments. By reinvesting these dividends, you can accumulate enough funds to cover your mortgage payments over time.

6. Real estate crowdfunding: Consider investing in real estate crowdfunding platforms that pool funds from multiple investors to purchase properties. These investments often generate rental income, which can be used to pay off your mortgage.

7. Invest in a high-yield savings account or CDs: While not as high-risk or high-reward as other investment options, putting your money in a high-yield savings account or certificates of deposit (CDs) can generate interest income. This additional income can be used to pay off your mortgage.

8. Peer-to-peer lending for real estate: Explore peer-to-peer lending platforms specifically designed for real estate investments. These platforms connect borrowers with investors, allowing you to earn interest income by lending money for real estate projects.

Remember, investing in alternative investments always carries some level of risk, so it’s crucial to do thorough research and consult with a financial advisor before making any investment decisions.

Sources

1. Research Financial and Housing Market Analysis: Look for reputable sources that analyze the financial aspects of homeownership, mortgages, and the housing market. This may include articles from financial publications, academic research papers, or reports from housing market experts.

2. Investigate Alternative Housing Models: Explore alternative housing models and financial strategies that challenge the traditional concept of homeownership. This could include concepts such as cooperative housing, tiny homes, or renting options that may offer different financial benefits and considerations.

3. Consult Real Estate Experts: Seek advice from professionals in the real estate industry, such as financial advisors, mortgage brokers, or real estate agents, who can provide insights into the pros and cons of homeownership, mortgage terms, and alternative housing options.

4. Consider Both Sides of the Argument: To get a well-rounded perspective, it is important to consider viewpoints from both critics and proponents of homeownership and traditional mortgage models. This will help you develop a balanced understanding of the subject.

Remember to critically evaluate the sources you come across to ensure their credibility and reliability. It’s always recommended to consult a variety of reputable sources to form an informed opinion on complex topics like homeownership and mortgages.