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25 year fixed mortgages seem like a subsidy to homebuyers that protects them from the market. Can you explain how this is a subsidy when it's a private lender
by causi 4y ago
25 year fixed mortgages seem like a subsidy to homebuyers that protects them from the market.
Can you explain how this is a subsidy when it's a private lender offering me the mortgage? Why would they offer it to me at that rate if it was a bad financial move?
- reducesuffering 4y agoThe private lender is most likely just making a commission on doing the paperwork to create the mortgage, but they're selling it to the government a la Freddie Mac and Fannie Mae. It's what a "conforming loan" is. https://www.rocketmortgage.com/learn/conforming-loan https://www.rocketmortgage.com/learn/conforming-loan