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Saturday, September 9, 2006


So somewhere along the way, I have learned something. You see, when you purchase a house, you have to put 20% down, or else you have to pay this mortgage insurance, which is right around $90-$100 a month. BUT, you can avoid it by taking out 2 loans. The first one you take out an interest only loan for 20% of the house, and then you use that to put down on the REAL loan on the house, and thereby you can avoid the mortgage insurance. Great idea right?


Interest only loan are CRAP! I have been paying on it for almost 2 years, and the loan amount IS STILL THE SAME!!! I HAVENT PAID JACK ON IT! So I got fed up with it, went to Wells Fargo and told em I dont want an interest only loan anymore. So we are refinancing our house and putting it all into one big loan.

We got lucky in that our house appraised for $255,000 (we bought it for $190,000) so the balance left on it is less than 80%, so we dont have to pay the mortgage insurance anyway. How lucky is that?

The other nice thing I found out, is that my credit score is 779! Thats near perfect. They told me at 700, your risk is so low that you are placed in the highest bracket for whatever programs they offer. It makes me feel good cause the guy on TV who talks about credit scores, he states that his is 740. So mine is even better than his.

And, with the refinance, we get to skip Octobers payment, which means that will free up ALOT of money for a back lawn and some cash for Disneyland.


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