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I feel extremely fortunate that I was able to get a sub 3% fixed rate mortgage. I still can't believe that a lender was willing to bet that a 3% mortgage would
by BitwiseFool 3y ago
I feel extremely fortunate that I was able to get a sub 3% fixed rate mortgage. I still can't believe that a lender was willing to bet that a 3% mortgage would be profitable over the course of the next 30 years. If I were a lender I wouldn't be happy with issuing fixed rate mortgages.
- nly 3y agoDon't worry, they made a profit on your mortgage. The interest rate risk would have been hedged away in the swap market.
- frumper 3y agoThe lender likely sold it off. There is a good chance a Freddie Mac or Fannie Mae owns the mortgage, otherwise it may have been sold to investors. It isn't a wholly free market decision to think your loan would be profitable over 30 years.
- medvezhenok 3y agoA lot of those mortgages got sold off into MBS and then got bought out by the Federal Reserve. So if you had a 3% mortgage, chances are, the FED partially subsidized your mortgage at the expense of the American taxpayer (which is what a lot of people are rightfully angry about).
- pc86 3y agoWho is angry about that (rightfully or otherwise)? I hear a lot of complaints about various aspects of the mortgage industry, and the fact that the fed partially subsidizes some mortgages some of the time is not one that I hear a lot.