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Subject:  Re: Interest Only Mortgage Date:  9/22/2005  2:06 PM
Author:  mew5280 Number:  211194 of 309665

Well, I actually did this, for the reasons stated above, in February of this year. BUT, I had a huge problem. My house was appraised during the refinance at $260K. (I originally paid $130K but had taken money out so my loan was at $185K). I was taking some money out during the refinance to pay some of the CC debt off, but not all so the total new loan amount was $204K. No problem I thought. I thought the 260K appraisal seemed high but was certain I could get 235-240K.

Went to a realtor to talk about starting the sale process when lo and behold, the appraiser really pulled the wool over my eyes. Apparently the going rate for a house like mine is at tops $215K. I got another realtor, same conclusion. I was ignorant about appraisals, should have done more homework but I didn't. My tax assessment assessed the house at $200K without knowing I have a finished basement and second full bath and cooling system in the house so I just assumed I could get 230-240K.

This is of course, very circumstantial. In addition though, I lost my job in May and was on a VERY limited budget until a few weeks ago when I started working again so having a lower mortgage payment was good for me.

I agree that buying a house initially with a no interest mortgage is not good. But in my case, I think I'm OK as I do plan on selling in a year or so. I took my equity already and am OK with that, it happened, it's the past,