Posted by Carmen on May 04, 1999 at 15:56:28:
That $7,000 I had to pay at closing for Credit and Life Insurance, and that I was told would come back to me in the form of cash - it’s all untrue!
I am getting the $7,000 back after cancelling the policies - but it will go back to the bank towards paying off the principal on the loan. What this means is, that I get to pay back a higher monthly payment on $49K rather than $42K (Purchase price $42K + $7K Insurance rolled in = $49K) and don’t get to play with my cash after all (which would have made it worth it).
Luckily, this was going to be a rental property, but the tenant is moving out May 31, so we’re going to sell it for about $65K (very little fixup!). Decided we’re not ready to be landlords yet, anyways!
Thanks for all who commented on the first post!
Live and learn, that’s the lesson …