We wanted to give everyone an example of a standard mortgage, compared to “The American Dream Affordable Homeownership Program”, however there is such a huge difference and so many variables with standard mortgage loans that it’s like comparing apples to oranges. With standard mortgage loans you have “Arms” (adjustable rate mortgages) which do exactly what it says they adjust up and down depending on the market, fixed rate, which doesn’t change, there are the closing costs, mortgage insurance if required, balloon payments and the list goes on and on.
So what we will do to show the main difference which is usury and red tape is start by explaining the closing costs, and the interest rates which are the primary means of usury. For those unaware the interest on most mortgage loans are charged by the month, which means until several years into the loan your interest is actually growing each month you are paying for the home, some, not all charge an interest per day, which is even worse. By doing this especially by the month, the lenders are usually depending on the percentage of interest they are charging per month, are close to doubling the price of the home, by the end of the term, depending on your set up on the loan, they can walk away with anywhere from several thousand dollars in interest, to doubling or more the price of the home by the time you pay it off. If that’s the case if you purchase a home for $200,000.00 with a high interest, or adjustable rate or any other kind of usury, you could end up paying nearly or surpassing $400,000.00 on the home.
If you start with just the closing costs, those range close to $15,000.00 depending on the state you’re in, requirements, and terms.
Let’s look at an example of standard closing costs, some of these items range in the amount of fees, or depending on your state, or the terms of your home purchase, but you will get the idea. Furthermore we will calculate the fees on the lower scale of the amounts.
Standard Closing Costs on a Home when Purchasing:
Appraisal: Ranges usually between $225 - $450 Our Example: = $225
Credit Report: Ranges usually between $15 - $40 Our Example: = $15
Processing Fee: Ranges usually between $575 - $1,000 Our Example: = $575
Escrow Deposit for Taxes and Insurance: Usually 1% - 3% Our Example: = 1% = $1,500
Transfer Tax: (the price they charge just to transfer your name onto the title) Usually 1.1% of the price of the home Our Example:= 1.1% = $1,500
Title Company Closing Fees: Ranges usually between $150 - $400 Our Example:= $150
Buyer Attorney Fee: Ranges between $175 - $500 Our Example:= $175
Lenders Attorney Fees: Ranges between $150 - $500 Our Example:= $150
Title Insurance (for Lender policy) Ranges between $175 - $875 Our Example:= $175
Homeowners Insurance: Ranges between $300 and up Our Example:= $300
Underwritting Fee: Ranges between $195 - $795 Our Example:= $195
Survey Fee: Ranges between $150 - $400 Our Example:= $150
Home Inspection: Ranges between $225 - $450 Our Example:= $225
Flood Determination/Life of Loan Coverage: Standard $19.50 Our Example:= $19.50
Recording Fee: Ranges between $50 - $150 Our Example:= $50
Courier Fee: Standard $30 Our Example:= $30
Prepaid Interest: Varies Heavily Our Example:= Not Included
Down Payment: Varies Heavily usually $20 of home purchase, but not always. Our Example:= Not Included
There are other fees in place depending upon your location, and there also may not be all of these closing fees allowed in all areas, however even without Prepaid Interest, and without a Down Payment, let’s calculate the lower side of this schedule of fees known as closing costs.
The total of OUR EXAMPLE ONLY is as follows:
A Grand Total of: $5,434.50
And that is not including a down payment which would usually require another $10,000.00 on average, plus if you arrange to do any prepaid interest that would add more.
So with S.H.I.E.L.D. you are saving right off the top, a minimum of over $5,000.00 and if you were to include a down payment you are saving upwards of over $15,000.00 right away, as we have eliminated closing costs. Furthermore, with a standard mortgage loan, you as the homeowner are responsible for any repairs to the home no matter how small or large, S.H.I.E.L.D. makes sure your home will last with a complete renovation from top to bottom inside and out, which no mortgage lender will do.
So let’s take a moment to discuss interest rates, besides the closing costs interest rates are usually what makes home prices so outrageously high, especially when you consider the fact that the lender charges interest every single month you pay on the home and sometimes they charge interest by the day, so even though you are paying down your purchase price, the majority of the time you are either paying just a small portion of your principle balance each month, or you are only paying interest and nothing on your principle each month for several years. Each month your interest is practically doubling, not 100% but very close, enough though to make it where you end up paying nearly double what your home was purchased for. This is a prime example of usury.
S.H.I.E.L.D. eliminates this by not charging interest, or if we do it’s a very small amount and furthermore it’s only charged on the amount of the actual home, and not by the month or day. But the majority of each home we sell to our homeowners comes with no interest. Also, interest its self is not considered usury, excessively high interest is considered usury, any amount charged that causes unnecessary hardship for the purchaser, or to make it nearly impossible for the purchaser to pay it off is considered usury. An example is 25% interest on a credit card, or 5-8% interest on a home purchase.
So how does S.H.I.E.L.D.’s “The American Dream Affordable Homeownership Program” look compared to the standard mortgage loan?
“The American Dream Affordable Homeownership Program”
(ALL Plans are Customized to each Homeowner)
Example of a 15 year plan (amounts will vary):
Home Purchase: $100,000.00
Renovation: $50,000.00
Debt Elimination: $25,000.00
Shield of Faith Protection Plan: $2,400.00 per year
Utility Credit: $500.00 per year
Grand Total: $177,900.00
Monthly Income: $1,500.00
Grand Total Per Year of Monthly Income: $18,000.00
Grand Total of Home: $177,900.00 divided by a 15 Year term = $11,860.00
Grand Total of Home Per Year: $11,860.00 divided by 12 months = $988.33 per month
Monthly Income after Monthly Payment: $511.67
Example of a 30 year plan (amounts will vary):
Home Purchase: $100,000.00
Renovation: $50,000.00
Debt Elimination: $25,000.00
Shield of Faith Protection Plan: $2,400.00 per year
Utility Credit: $500.00 per year
Grand Total: $177,900.00
Monthly Income: $1,500.00
Grand Total Per Year of Monthly Income: $18,000.00
Grand Total of Home: $177,900.00 divided by a 30 Year term = $5,930.00
Grand Total of Home Per Year: $5,930.00 divided by 12 months = $494.16 per month
Monthly Income after Monthly Payment: $1,005.84
As you can see just from our simple basic examples the amount of the home and payments are extremely less expensive than a standard mortgage loan, this is all done by eliminating usury, and furthermore the two examples of S.H.I.E.L.D. Affordable Homeownership Program, also includes a complete renovation of the home, includes major appliances, and insurance on the home, a debt free life, a Life Management Coach, besides no mortgage, no usury, which no mortgage lender will even compare.
As we mentioned above, there is such a sharp contrast between a standard mortgage loan and S.H.I.E.L.D.’s “The American Dream Affordable Homeownership Program” that it is literally comparing apples to oranges.
Are you interested in owning a home through “The American Dream Affordable Homeownership Program”? Then become a member of S.A.F.E. Housing Union now and get started, and remember your monthly membership through S.A.F.E. goes towards your home purchase!