I put 20% down in the 90’s, which allowed me to avoid PMI. Because it was a conforming mortgage that went through Fannie, I probably had a hair lower rate than I’d have paid otherwise (like a ‘jumbo’ of the time)—no big deal.
>>>I put 20% down in the 90’s, which allowed me to avoid PMI. Because it was a conforming mortgage that went through Fannie, I probably had a hair lower rate than I’d have paid otherwise (like a ‘jumbo’ of the time)—no big deal.>>>
It was no big deal to you, but it was a big deal to your lender who was able to give you a good rate, then sell the loan, get his money back and lend it to some other family buying their home.
And the money they LENT you came from Fannie too when they sold the loan they made to someone before you and sold it to Fannie. See how it worked?