mortgage: It wasn't fraud that put most lenders out of business
- 10/18/07 01:43 AM
In a free-market economy such as ours, the willingness to make money spurs on many things, including the housing and mortgage market. Much of our recent real estate explosion was fueled by lenders lowering the bar on what it took to get a loan. The reason they lowered the bar was there were investors willing to buy those loans in the secondary mortgage market. In the mortgage-money cycle of life, loans are made, they are sold in the secondary-market, and then loans with similar characteristics are packaged into mortgage-backed securities. These mortgage-backed securities typically are safe investments for pension funds and life insurance companies. Over the … (2 comments)
mortgage: It's not the Fed that keeps long term interest rates low
- 10/18/07 01:02 AM
It's become common for the public to watch the actions of the Federal Reserve, thinking that their raising and lower of interest rates will have some affect on home mortgage rates. The truth is that what the Fed does has very little impact on interest rates for most home mortgages. To understand what drives long-term mortgage interest rates you must understand where the money for home mortgages originates. Home mortgage money comes primarily from investors. Once a mortgage is made to a homeowner it is sold on the "secondary" market and packaged with other mortgages becoming a "mortgage-backed security." This security is … (0 comments)
Gary's advice can help you take your real estate career to the next level. He also offers advice on buying and selling Real Estate in Richmond, Virginia and surrounding areas such as Henrico County, Chesterfield County, Hanover County, Richmond, Goochland.
In a free-market economy such as ours, the willingness to make money spurs on many things, including the housing and mortgage market.
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