Tagged with " American Mortgage Network"
31 Oct
2011
Posted in: My Ongoing Story
By    Comments Off on Welcome to Your New Home

Welcome to Your New Home

A Dream, Not Deferred

In April, 2005, I bought a house. I was a 36-year old, single woman working at a prominent advertising agency in Minneapolis, MN. 1 week after closing on the house, I was laid off, and I did what any former freelance designer would do: I started making phone calls, redeveloping contacts and fought my way back into the freelance market.

The Mortgages

My $600 rent was about to more than double to become a mortgage to accommodate a $206,000 loan (the maximum amount I was able to borrow) for my cute little fixer-upper, single-family 1914 bungalow in St. Paul, MN.

I had two loans totaling $206,000.
Total payment per month: $1386

(Numbers rounded to the nearest dollar.)

1. American Mortgage Network, Inc.
AKA First Equity Mortgage (AKA Fannie Mae)
$164,800.
30-year fixed
6%
$1155 | Monthly Payment

$988 | Principal and Interest
$120 | Property Taxes
$046 | Hazard/Flood Insurance
$000 | MIP/PMI

2. CitiBank | Home Equity Line of Credit
$41,200
15-year ARM (Adjustable Rate Mortgage)
6.75% | April, 2005
$231 | Monthly Payment
9.25% | December, 2006
$324 | Monthly Payment

The Plan

The mortgage broker’s strategy was simple: start out with these 2 loans to get into the house, and refinance when interest rates drop to get out of the ARM. Seemed simple enough.

The plan was to get me into the house (or any house) quickly. “Buy now, tweak later” was the attitude.