Fannie Mae-No Politics (FNMA)

[jeddiemack]

Obit,

I get it that you are wanting separate loan schedules. But its really not necessary to understand the math.


In this instance while, his bill "requires" separate stuff and calculations, in the big picture for this analysis its really moot. Fact is separate loans would get us to pretty much the same spot. Couple of bucks one way or another. Its how and why Buffet can do deals working on a napkin and others require an algorithm. Its the beauty of pre-payments on loans it allows for faster amortizations and gets the payer quickly off of the original loan schedule. He clearly says to apply excess to principal. Dollars are fungible asset so it doesn't matter which "principal" to apply to; at the same cost its the same remainder.

You are stuck on the literal writing of the proposed bill. But to understand what would occur, its not necessary.

Thanks for all you do and much appreciated.

JM