Paying interest on a Kingdom Hall loan, is it interest or mortgage ???

by run dont walk 4 Replies latest watchtower scandals

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  run dont walk

  I have read several threads where the general concession is, a new Kingdom Hall being built that needs a loan is usually 3 % . Let's say this is true (for the sake of arguement)

  Now I just renewed my mortgage at 5 % interest, sounds great doesn't it, but the first 5 years 50% of your money is going to interest and 50 % to principal, because the bank makes you pay the interest first. So as good as 5 % sounds it's really more like 40-50% for the first five years.

  So my question is does the Watchtower charge the same way a bank does, 3% sounds great but is it a loan or mortgage, big difference.

  When you buy a new car for $20,000 it costs you about $23,500 with interest on a 5-year loan.

  But mortgages work differently, How does the Watchtower charge ?, I would really like to know.
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  onacruse

  GOOD HOPES FOR 2003 - 2004

  T HE work of the Watch Tower Bible & Tract Society is the preaching of the gospel of Messiah’s kingdom. Every consecrated child of God is privileged to participate in this work. Brother Russell always outlined the work during the year in proportion as the Lord provided the money through his consecrated children. We continue to follow that example, as appropriate in the church.

  Each one who has been enlightened by the truth appreciates the fact that this blessing came to him as a gracious gift; and as he has a zeal for the Lord he appreciates his privileges of using time, energy, and money in telling the message to others. Some who are doing as much house-to-house witness work as their conditions allow are also blessed with some money which they desire to use in the Lord’s service, to the end that hungry souls which they cannot personally reach might be fed upon the precious kingdom-gospel.

  The custom of setting aside each week so much to be used in the Lord’s service has always proved beneficial to the giver. A notice to the Society that you hope to give so much, enables us to outline the work, based upon what is expected.

  Upon receipt of this issue of The Watch Tower kindly write two cards, exactly alike. One of these

  put aside for your own record of what you have promised; the other send to us. Or, if you prefer, put it in the form of a letter, keeping a copy of the letter for your own convenience. We suggest that it be brief and that nothing else be written except the following:

  By the Lord’s grace I hope to be able to give to his work for spreading the gospel during the ensuing year the amount of $___ . I will remit in such amounts and at such times as I can find convenient, according as the Lord prospers me. (Signature)___

  Kindly address this card to the

  WATCH TOWER BIBLE & TRACT SOCIETY,

  Financial Department,

  117 Adams Street, Brooklyn, N. Y.

  Brethren residing outside of the United States should write their respective offices in the countries where they reside, and remit their “Good Hopes” to such offices. Of our own selves we can do nothing, but we are assured that the prayers of the righteous avail much. Hence we ask the brethren to present us daily before the throne of heavenly grace, that we may be given wisdom and grace to use the money to the best advantage in spreading the gospel to the Lord’s glory, and to do the work entrusted to us.

  Just send the money, dear brothers, and trust us...we have the wisdom and grace to use it wisely.

  Craig

  (ps: except for the header, that's an actual quote from the 5/15/1930 Watchtower)
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  Mr. Kim

  Really, it is both.

  Keeps the money in the WTB&TS!! The money tree.

  Please give.

  You can trust us can't you?
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  foreword

  A mortgage or loan is exactly the same. The interest is always calculated on the remaining balance at the time of payment. Basically, a 5% loan or mortgage for a period of 5 years will cost you the same if you respect the payment due dates. In other words, using your car loan example, if this were a mortgage under the same interest rate and lenght (5 years) you would pay exactly the same amount in interest for both.

  The reason why a mortgage appears to be more expensive is simply because the maturity date is much further away. Mortgages extend to 15, 20 , 30 years, so the time needed to pay your principal is longer and reflects on the monthly payment amount. It appears and does cost more because you agree to give less each month on the principal since you will extend this to a long period of time, paying interest on a longer period of time.

  Here are some numbers for you.....

  Loan 1: $20,000, 5%, 5 years, total paid (22,645.20) interest paid (2645.20) payment (377.42)

  Loan 2: $20,000, 5%, 15 years, total paid (28,468.80), interest paid (8468.80) payment (158.16)

  Notice how your payment is less for the longer loan. It takes in account the lenght of time you agree to pay back. You pay more interest because you finance for a longer period of time.
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  joe_from_kokomo

  A better question to ask here is this: HOW CAN THE SOCIETY JUSTIFY CHARGING INTEREST (USURY) FROM THEIR OWN BROTHERS?" This violates the guidelines in the Hebrew Scriptures! It is Hypocrisy of the highest order. THINK ABOUT IT. They are charging the brothers (and sisters) interest to build a Kingdom Hall to further their own interests.

  OK, OK, I took Economic Analysis, and Micro/MacroEconomics in college, and I am well-aware of the "time value" of money, which is around 3% per annum. But, the Bible does not make this distinction. It DOES NOT say that it is OK to charge a small amount of usury from your brothers to account for the time value of money- it says IT IS NOT OK TO CHARGE ANY USURY from your brothers. Here are the scriptures to back it up from the NWT. This first one is Lev. 25:35-37 (bolding/emphasis mine):

  35 "‘And in case your brother grows poor and so he is financially weak alongside you, you must also sustain him. As an alien resident and a settler, he must keep alive with you. 36 Do not take interest and usury from him, but you must be in fear of your God; and your brother must keep alive with you. 37 You must not give him your money on interest, and you must not give your food out on usury.

  
  But, that's not all. Here is yet another reference, to be sure, from NEH 5:6,7:

  6 Now I became very angry as soon as I heard their outcry and these words. 7 So my heart took consideration within me, and I began finding fault with the nobles and the deputy rulers, and went on to say to them: "Usury is what YOU are exacting, each one from his own brother."

  So, it really bothers my Bible-trained conscience that they not only permit this, but actually encourage it.

  For example, At our former KH, over $180,000 was raised to purchase property for a new Kingdom Hall. Several of the loans from the brothers were at interest rates of up to 5%. And, the elders thought this was just peachy keen. They admired those who offered the loans (admittedly a good thing for these ones to do), and had no problems with the interest charges (in spite of Bible guidelines to the contrary). We also offered them a large loan at 0.0% interest (because of these Bible guidelines listed above, and numerous WT pubs that mention them).

  Now, here's the rub: when it came to paying back the loans to the brothers, guess who's loans got paid back first? Yes, you guessed it - the brothers who charged 5% interest for their loans were paid back in a regular and timely manner. Other loans were put on the back burner, especially if they were interest free loans. The elders instead begged for extension after extension.

  Our family's loan was not paid back at all. Months went by and after 4 (that's right 4) meetings with the P.O. on this topic, requesting that the payment terms of the original note be followed, I actually had to write to the Society to get our loan repaid. Thankfully, the BORG in Brooklyn took my side and instructed the local elders to immediately repay our now-extended and very-overdue 0.0% loan.

  Such rank hypocrisy shows that these folks truly DO NOT have "love among themselves"...