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Path: utzoo!watmath!clyde!burl!ulysses!mhuxr!ihnp4!bocar!sieg
From: sieg@bocar.UUCP (B A Siegel)
Newsgroups: net.consumers
Subject: Re: mortgage question
Message-ID: <121@bocar.UUCP>
Date: Thu, 18-Apr-85 14:47:58 EST
Article-I.D.: bocar.121
Posted: Thu Apr 18 14:47:58 1985
Date-Received: Fri, 19-Apr-85 00:49:43 EST
References: <188@mhuxn.UUCP> <344@mtxinu.UUCP>
Organization: AT&T Bell Laboratories, Piscataway
Lines: 19

> All of the advice I've heard (except from real estate brokers,
> whom I don't trust much) says to chose the lowest-numbered
> mortgage you can get from this list:
>
>	1.  Fixed rate
>	2.  Variable rate (capped is better than uncapped;
>	    I think everyone is offering capped ones these days)
>	3.  Negative amortization (same as "GEM" above)


	One should be aware that there are some GEM motgages which DON'T 
have negative amortization.  One such is  offered by Somerset Savings Bank, 
Somerset NJ fits this category.  Basically years 1-6 are at a 
30-year fixed rate & the remaining 9 years payments increase by 7% per year.


						Barry Siegel

..!bocar!sieg