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Fannie Mae's "power payment" mortgage

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Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I had a lender do this one year, I think it was the December payment. As I recall, they allowed a payment skip as a Christmas gift. Only happened once, but it was nice at the time.

Roger
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Banks have been doing this "skip a payment" on car and personal loans for years. The thing you need to remember is:
The monthly interest not paid is simply added to the mortgage balance.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol: :lol: :lol:
Yup and that lil ol skipped payment at the front end of a 30 year mortgage is gonna COST you a bunch by the end!

Do the TVM calculations before you take advantage of that "generous" offer!

Is anyone else noticing the trend to 'buy' houseing the way you 'buy' a car? Based not on what the investment value is but rather whether or not you can 'afford' the monthly payment, with little thought ot it's "value"?

Result is that when the :evil: BAD :evil: :twisted: evil :twisted: and 8O UGLY :wink: appraiser screws up the deal even the prospective homeowner is furious, rather than grateful for your assistance! :?
 

Red Blumenstock

Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified General Appraiser
State
Florida
Lee Ann,

I sold my Real Estate and Insurance business in 1980 and was lamenting before then that we had raised a generation of installment payers. The standard question was not, "How much does it cost?" but instead was, "How much a mionth is it and can I work that into my budget?" As though there was a budget. Ha! :x
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol:

Red:

I fear you had early identified the primary concern for today! I really didn't see it CLEARLY until fairly recently. At least not as a pervasive societal norm. I guess prior to recently I just thought that there were a few idiots out there, now it seems like such behavior is far more typical than not!

Not a nation of savers nor wise investors at all. What happens when or if the Fed govt stops making payments in our old age? 8O

'Will work for food' may become more than a side of the highway sign...

Just got in another brawl over a value and am thinking about getting out of the biz... I just HATE the current mentality :evil: .
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Red, that is the best know sales tactic now in RE sales. Agents even advertise homes to the effect of own this house for $zzz per month! The only difference between then and now is Regulation Z. Mice type is an amazing thing.
 

Roger

Junior Member
Joined
Jan 24, 2002
Professional Status
Certified General Appraiser
State
Missouri
Car dealears have known for years that a car is only worth what the bank will lend on it.

The bank gets the value from 'Blue Book' or other price guide.

I wonder if car dealers pressure the 'Blue Book' publishers to raise values in their book?

Now we have a growing number of dealers that also finance. They taylor the payments to your income, can be weekly, or monthly, or whenever you have it. Payments are made at the dealership. These folks are selling loans, and not cars. The buyer never considers what the car is worth, only if he will have beer money after the payment is made. Some of the worst of these dealears will sell a car, then repossess it, sell it again, and again.

Anyone else see any similarities to the sub-prime market and this practice?
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Thats what we need...A blue book for homes! Just look up the style, size, location, features, options....ohhh wait isn't that sorta what we get paid to do? Well, forget that!
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Mike, come down and visit Hotlanta. They got subdivisions with "base model" homes. See the one you like, and just check off from a list of "extra feature" items you want. It can be kinda like going to a really nice, expensive restaurant, where there are no prices on the menu. :lol:
 
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