At 01:52 PM 1/2/2003 -0600, you wrote:
I've been waiting all day to reply to this thread, since reading on line at work. For the original question: Erik, do you get any AM stations that carry the financial network, or similar name? I listened when I could pick them up in central PA, above I-80, on 1520 from Buffalo or Rochester. On Christmas Eve during on my long drive home I picked the station up. A caller was asking about funds which were based on home loans. He couldn't believe they were selling well, or the claims they were making, promising returns of above 6-8%. The caller said, if the loan rate is 5-6%, how can they make 6-8%. And who hasn't refinanced their homes by now? (Yes there are always new home buyers, but he was talking about a re-finance company.) His other point was these companies were lowering and lowering their requirements, giving loans to people who five years ago would have been turned away. I know there are minimum requirements, but of course this business has it's shady deals like any others. The hosts agreed with him, and made the final point that in a few years a lot more loans would be defaulting, the funds' value would plummet.> From: Erik Reuter [mailto:[EMAIL PROTECTED]] > > M.I. is required for less than 20% down-payment, from everything I've > read. I did read an article that said that sometimes people continue > paying the mortgage insurance when they don't really have to (they've > reached 20% equity or whatever). You might want to check to see if you > can legally stop paying it.You might have to have a new assessment done to verify the increase in value of your house. Which can cost you, of course. Some banks force that one and some don't. - jmh
Just to add some fun personal history. As a single person I was able to buy my house with almost no money down, I think I had 5% and the home sellers helped the deal by making it look like I put 15% down, they 'gave' me 10%. I was on the edge of the amount I could finance, which sucked, the house I really wanted was 2-5% more than I could afford. So I had to get PMI. Within months of buying the house there was a huge problem with the escrow account. The mortgage company insisted I was 2k behind in future tax payments and wanted it NOW. I even had the tax collector calling them on my behalf to say they had made a mistake. I went three months where my mortgage payment was doubling then tripling because they were adding penalties and so on. I wasn't on the verge of losing my house, I had a lawyer who told me to just stop paying it all together, heck I'd only be out 20k! But it got solved, they removed the penalties, and I was paying the normal amount again. Six months later they sold my mortgage. When the rates dropped I re-financed and had the house re-appraised to get me above 20%. Now I pay no escrow or mortgage.
Kevin T.
That's better
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