[rpicker04]

Originally Posted by getdul981

I'm not sure what you mean about charging you a $175 fee. It was my impression that you could pay any amount over the monthly payment and it would automatically be applied to the principal. Were you referring to the bond payment instead? You have once a year to pay the entire bond payment, but you can pay the entire loan off at any time.

The $175 fee also includes a re-amortization of the loan which results in a lower P&I payment over the remaining life of the loan. This allows you to basically refinance the loan at same interest rate resulting in lower P&I payment without closing costs. That is what is good about it.

[Russ_Boston]

Originally Posted by getdul981

I'm not sure what you mean about charging you a $175 fee. It was my impression that you could pay any amount over the monthly payment and it would automatically be applied to the principal. Were you referring to the bond payment instead? You have once a year to pay the entire bond payment, but you can pay the entire loan off at any time.

I have the same deal with Citizens and this is different than just applying principal to the loan. Yes, you could do that any month you wish and in any amount that you wish. And yes it will reduce the principal so you'll pay it off sooner.

But the deal mentioned here allows the monthly payment to be reduced. For example if you had a 200K loan and the payment was $1000 per month you could put down another 100K and they reduce the monthly payment to $500 (same length of time). They do this since many people take the mortgage for the TV house and still have a house to sell up north. When the house sells you can reduce your monthly nut down here. (added note: you obviously would owe 100K less on principal balance as well)

[katezbox]

Originally Posted by swimdawg

The BBD (Big Bad Developer - who I am gaining more respect for with each passing day) referred me to Citizen's First Wholesale Mortgage Company in LSL.

Just to be sure you know this...but CFWM is a company owned by that BBD (who I also greatly respect). I am not passing judgment on them, just stating a fact that may not be known...

We were biting our nails with them until the last minute as well...and they also made a couple of huge goofs. But they set everything right and the closing was glitch free!

[KatzPajamas]

We are so anxious to get there, but cant come for couple of years. That being said-we have thought of buying a home and getting a management company to rent it out for us until we can live there. Anyone have experience with this?

[Russ_Boston]

Originally Posted by KatzPajamas

We are so anxious to get there, but cant come for couple of years. That being said-we have thought of buying a home and getting a management company to rent it out for us until we can live there. Anyone have experience with this?

If you need a mortgage to buy the TV house you will have to tell the mortgage company (and insurance co) that you plan to rent out. Slightly higher loan rate and insurance premium to do so.