When I bought my house in the early 80s, I made a down payment in excess of 20% of the purchase price. The house was mortgaged as security; and I had a job that paid me about five times the annual payment required to service the loan.
Are you suggesting that there would have been no competition for my business had there not been Federal Government guarantees?
ML/NJ
Betcha a million bucks its a Fannie or Freddie loan.
>>>When I bought my house in the early 80s, I made a down payment in excess of 20% of the purchase price. The house was mortgaged as security; and I had a job that paid me about five times the annual payment required to service the loan.>>>
And if you had a fixed rate loan and it was within the GSE limits, your loan was sold to the GSEs so your lender could get their money back to go out and make more loans.
And they kept the servicing so you were never even aware of your loan being sold, how many times, and to whom.
But most people have no clue on how the mortgage finance and secondary markets work and how important the GSEs were and are. They just talk like they know and end up looking like the fools they are. (I don’t mean you)
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.