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From: shazam@mhuxn.UUCP (Tom Marsden)
Newsgroups: net.consumers
Subject: mortgage question
Message-ID: <188@mhuxn.UUCP>
Date: Wed, 10-Apr-85 12:25:20 EST
Article-I.D.: mhuxn.188
Posted: Wed Apr 10 12:25:20 1985
Date-Received: Thu, 11-Apr-85 00:29:04 EST
Organization: AT&T Bell Laboratories, Murray Hill
Lines: 29

I am shopping for my first mortgage and would appreciate
all the advice readers of this group can offer.

One plan that is particularly interesting is something called
"Graduated Equity Mortgage."  Payments with this plan start
out at 8.9% during the first year, and then increase 7.5%
each successive year until the sixth year at which time they
level off at the current (4/85) rate for a 30 year fixed mortgage:
13.25%.  The primary advantage of this plan is that we can purchase
a more expensive house than would have been possible with a straight
30 year fixed mortgage, and the mortgage is paid off after 15 years,
which of course lessens the overall cost of the mortgage (assuming
we keep the house for 15 years).

Besides the GEM plan, we are also considering a standard 30 year fixed
rate mortgage.  But I am mostly interested in hearing from Netnews
readers who have had experiences with a GEM-type plan, as well as
anyone else who has undergone the trials and tribulations of procuring
their first mortgage.

Thanks in advance.

Tom Marsden
AT&T Bell Laboratories
Room 6A-309
600 Mountain Avenue
Murray Hill, NJ 07974
(201) 582-6202
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