My 1st real estate transaction - my own

By
Real Estate Agent with Keller Williams Realty Partners ~ 678.462.1191 agentandersen@gmail.com Georgia Broker 175548
https://activerain.com/droplet/4g8L

One name represents my 1st real estate transaction; the former President, Jimmy Carter.

For anyone that purchased a home in the time when Jimmy Carter was President, you know just hearing the name what it represented to you as a home buyer; through the proverbial roof high interest rates! 18% APR!  Yikes! It hurts just thinking back at that rate.  Of course, the home prices were much more reasonable. 

I found our first home in a very small ad in the back of a newspaper.  Remember those days?  No real estate agent to guide us through the process.  Actually, it was the only house we looked at.  We were easy to please, and basically tired of making those dreaded trips to the Laundromat.  It was close to work and had a spot for a washer & dryer.  A refrigerator for the kitchen was secondary for us. 

I laugh now at the financing process; it was a non-qualifying, assumable first loan at 4.5% and a 2nd mortgage of 18%.  Yes, NON-QUALIFYING!  That means anyone could assume the loan!  In those days, you could buy a house with this type of loan without any documentation with just a 15 minute phone call. 

I didn't learn that this easy money came with a even bigger price tag than the 18% interest on the 2nd mortgage until we went to sell our home.  Without an agent to give us any advice, I found out the 2nd mortgage had NEGATIVE AMORTIZATION!  I almost dropped the phone when I called the mortgage company for a payoff amount, and then called back the following month to find the payoff had gone up, not down.  What?  Moral of the story, it pays to have an agent give you some guidance. 

It was our 1st home and our castle, but it was an expensive learning experience.   

 

 

 

Posted by

Laura Andersen, REALTOR®, Associate Broker / Keller Williams Realty Partners
678-462-1191
AtlantaHOMEListings.com

 

  

  

 

 Laura Andersen | Associate Broker at KW Realty Partners | www.AtlantaHomeListings.com

 

 

 

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Home Buying
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Georgia Cherokee County
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1st time home buyers

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Rainmaker
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Stacey Williams
Alpharetta, GA
Experienced Metro Atlanta Real Estate Agent

Laura - thanks for sharing your 1st real estate transaction! I think back on my first experience and it was good and bad and a worthy experience.

Apr 14, 2014 01:09 AM #1
Rainmaker
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Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

Laura, It is always the things we don't know about that can come back and bit us in the proverbial bottom.  My first home came at an even higher interest rate ... 21+%. I don't know who we did it ... but we did.

Apr 14, 2014 06:53 AM #2
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I have a feeling in the next decade, those assumable mortgages will be something we are dealing in again, though I doubt they will ever be non-qualifying ever again.

Apr 27, 2014 12:05 PM #3
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Rainmaker
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Laura Andersen

A HomeSOLD Name (678)462-1191 Woodstock, Georgia
Call your Market Leader, Laura Andersen, for buying or selling
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