Okay so to be clear here the morbid meaning people are taking from this isn't what was intended A mortgage being a "dead pledge" is supposed to be a good thing -- it's *better* to have a dead pledge than a living pledge, it means you're the real owner of the landhttps://twitter.com/MerriamWebster/status/1380942587134156804 …
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A "dead pledge" is "dead" as in it's fixed in stone - you know how much money you have to pay over how much time, and as long as you make those payments, the title of the house is yours and you are the owner in every sense - free to whatever you want with it - starting now
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A "living pledge" is the other kind, the worse kind You get to live here, but you're not officially the owner yet, the original owner still keeps their rights, and every so often we get to revisit the terms of the deal to see if they still like it and maybe want to change it
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In modern times the average rent-to-own agreement is pretty close to what the ancient Romans meant by a "living pledge" for real estate And as much as people complain about a mortgage I think we can agree the "classic" fixed-rate mortgage is a best-case scenario for debt
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Whereas rent-to-own is pretty often, you know, a scam As are other "living" debts like carrying a credit card balance
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This is the big difference between a home mortgage and a car loan, the latter is a "living pledge" You do not own the title to a car when you finance it, you haven't actually finished buying the car, you WILL buy the car AFTER you make your last payment
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As opposed to a mortgage where you HAVE BOUGHT a house, the title to the house is yours, and now you owe the bank money Legally, it is a very different situation and this difference can have serious consequences
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(By this ancient definition, a lot of "mortgages" on homes blur the line between a dead and living pledge, like the fad for a while to offer ARMs with an introductory teaser rate and then continually refi You know, the thing that collapsed the whole US economy)
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