We recently closed on a house with a primary market player and in the contract it gave the standard
Your loan can be sold at any time yadda, yadda, yadda... and this is fine.
Fast forward 5.5 weeks and our mortgage has been sold to a secondary market player.
How could this possibly be financially beneficial for the original loan holder?
Are they truly making enough money from the mortgage fees and first payment's interest to to warrant their need to clear up their credit line for new mortgages?
Are mortgages always sold for less than the remaining principal?
House: $150,000 Down: 20% ($30,000) Mortgage: $120,000 Interest: 3.75% Term: 30-year fixed