This, and also borrowing risk. It's more likely the a person will not pay the mortgage than a bank. More risk means higher rate to offset for the risk of defa

This, and also borrowing risk. It's more likely the a person will not pay the mortgage than a bank. More risk means higher rate to offset for the risk of default. But also, basically the banks can push you around because they have the money. The bank doesn't even have to give you the federal funds rate or the risk-free rate.