Bonds are just loans that are so big that the institutions that create them divide them into standardized securities and slice them up into affordable units. That is what Fannie Mae and Freddie Mac do with residential mortgages; they bundle home loans together so that many small streams of income become giant securitized cash flows, […]
Tag Archive | "Fannie Mae and Freddie Mac"
What Are These Bonds And Why Should Home Buyers Care? When you borrow from a bank or finance company to buy your home, the loan itself becomes a valuable asset for the holder. The value comes from your promise to pay the amount due each month, on time, every month. Given the time and effort […]
The Home Affordable Refinance Program or HARP is a program by the federal government to help homeowners in refinancing their mortgages. If you are current on your mortgage payments and still did not get traditional refinancing, maybe because the value your house has declined, HARP can help you refinance. This program by the Federal government […]
This article is intended to help the reader understand the cryptic sounding term mortgage backed securities or MBSs and how they affect mortgage rates. To begin with let us look into what mortgage backed securities are all about. Mortgage Backed Securities Mortgage backed securities are simply bundles of mortgages with similar terms, such as interest […]
“Who owns my mortgage loan?” This is not an unusual question, but the answer is not as straightforward as you might think it to be. The owner of your mortgage loan is almost certainly not the person you arranged it with, nor even the company he or she works for. As long as you maintain […]