3 ms·
Sounds like picking up pennies in front of a steam roller.
by rcme 4y ago
Sounds like picking up pennies in front of a steam roller.
- sdwr 4y agoWhere does the risk / exposure to interest rates come from in this example? Intuitively the loan already exists, this would just be a bridge.
- sokoloff 4y agoIf mortgage rates fall, people will refinance or take new loans when they move. If mortgage rates rise, these loans will be held to term and every new property that this is moved to, the lender will be originating a mortgage at 3% when the market is at 6%, 9%, or whatever.