Background:
** Mortgages on Primary Residences by individual owners**
The compound interest charged by banking and mortgage institutions in the United States is a form of usury and is an unfair practice.
Owners with a 30 year mortgage will likely spend twice the amount of the purchase in interest over the course of the 30 year term.
Solution
Change banking and mortgage regulations to outlaw compounding interest on the unpaid balances of mortgages. All existing mortgages must be converted to the simple interest formula and previous excess interest paid on those mortgages are to be refunded to the individual purchaser(s) by direct deposit to their Social Security Account.
Details
- Simple interest should be calculated at a fixed rate not to exceed 10%.
- A one time lending fee may be charged by the lender not to exceed 2% of total purchase price.