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What is this somewhat complicated maneuver meant to do? Each month sees principal payments increasing faster and les and less interest being paid, thus tax savings are reduced. Both the mortgate company and the realtor have is in a corner because if we choose to not take the no-doc loan, we will default and lose our deposit. The motivations for using swap contracts fall into two basic categories. If you use credit cards instead of cash you will spend 12-18% more.
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