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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Captain Jack who wrote (36169)	7/25/2005 3:55:50 AM
From: mishedlo	Read Replies (1) \| Respond to of 306849

Why any bank would give an interest only mortgage is a question. I am in an interest only mortgage. Then again I have 75% down payment. Is that enough? Besides I make payments as if I was in a 15 year fixed. But more to the point for the average lender, Because there is no PERCEIVED risk. They sell all the risky loans to Fannie Mae. In fact, I believe they (banks) want Fannie Mae to go under. So they feed all the shit to Fannie that they can. Now, why does Fannie Mae take all those loans? I have no freaking idea. Mish

To: Captain Jack who wrote (36169)	7/25/2005 12:55:54 PM
From: bentway	Respond to of 306849

"Why any bank would give an interest only mortgage is a question." Why wouldn't they? They maintain total control of the equity and get straight vigorish. The ultimite scam is to get someone to make long term recurring payments that cost you nothing. If the borrower defaults, they just sell it to someone else. From the borrower's point of view, they intend to make more on appreciation than they lose in vig, so, they see it as costing them nothing. Greed from both sides drives the process.