What is the Secondary Mortgage Market and How it Benefits Homeowners

By Alan Rosenthal

No one ever pays attention to what lending institution holds your mortgage loan. You are focused on the interest rate, the down payment and your monthly payments. What happens behind the scenes is a competition for who lends you money. Most borrowers do not realize that their local lender often times is not large enough to cover loans throughout your community. Local banks, mortgage companies and credit unions know they can resell your mortgage to stronger financial institutions in what is called the secondary mortgage market. This market is a great benefit to homeowners because it spreads the risk, attracts investors and saves the homeowner time and money.

The competition between lenders for second mortgages is beneficial to homeowners for many reasons. First it brings down interest rates, allowing more families and investors to buy homes. With competition, the rates no longer rely on fluctuating financial services industry but rather on world capital markets which are steadier. Also the increased amount of foreign capital flooding into U.S. real estate brings these rates down and liquidizes the financial climate.

Secondly, competition lowers closing costs and fees. Because of modern communication and internet, lenders are able to send out information on mortgages quicker which greatly improves the number of options. With new choices and options for second mortgages for homebuyers and investors, financing property has become more affordable. The secondary mortgage market supports statistical tools and objective observations on credit making it easier for families to be approved for loans without racial biases or stereotypes. Also it has now evened out regional gaps, making it even easier for people to be approved for loans even when the economy is down. These changes in the secondary mortgage market have made the way for our current record breaking high in U.S. home ownership at 69%.

To learn more about how Real Estate Investments can help secure your family's financial future, go to Dr. Alan Rosenthal's website at FinancialHealthRealEstate.com where you can find more great investment information. And while you're there, please sign up for your FREE Financial Health Real Estate Starter Package full of tips, newsletters and much more. Plus, you are cordially invited to attend one of his real estate investment workshops by visiting FinancialHealthRealEstate.com/UpComingEvents.html. For additional information listen to one of Dr. Alan Rosenthal’s investment talks at FinancialHealthRealEstate.com/InvestmentTalks.html.


Home About Dr. Rosenthal Rave Reviews Upcoming Events Credit Repair Solutions Articles and Resources Products Ask Dr. Rosenthal Schedule an Appointment FAQs Blog Contact Us	What is the Secondary Mortgage Market and How it Benefits Homeowners By Alan Rosenthal No one ever pays attention to what lending institution holds your mortgage loan. You are focused on the interest rate, the down payment and your monthly payments. What happens behind the scenes is a competition for who lends you money. Most borrowers do not realize that their local lender often times is not large enough to cover loans throughout your community. Local banks, mortgage companies and credit unions know they can resell your mortgage to stronger financial institutions in what is called the secondary mortgage market. This market is a great benefit to homeowners because it spreads the risk, attracts investors and saves the homeowner time and money. The competition between lenders for second mortgages is beneficial to homeowners for many reasons. First it brings down interest rates, allowing more families and investors to buy homes. With competition, the rates no longer rely on fluctuating financial services industry but rather on world capital markets which are steadier. Also the increased amount of foreign capital flooding into U.S. real estate brings these rates down and liquidizes the financial climate. Secondly, competition lowers closing costs and fees. Because of modern communication and internet, lenders are able to send out information on mortgages quicker which greatly improves the number of options. With new choices and options for second mortgages for homebuyers and investors, financing property has become more affordable. The secondary mortgage market supports statistical tools and objective observations on credit making it easier for families to be approved for loans without racial biases or stereotypes. Also it has now evened out regional gaps, making it even easier for people to be approved for loans even when the economy is down. These changes in the secondary mortgage market have made the way for our current record breaking high in U.S. home ownership at 69%. To learn more about how Real Estate Investments can help secure your family's financial future, go to Dr. Alan Rosenthal's website at FinancialHealthRealEstate.com where you can find more great investment information. And while you're there, please sign up for your FREE Financial Health Real Estate Starter Package full of tips, newsletters and much more. Plus, you are cordially invited to attend one of his real estate investment workshops by visiting FinancialHealthRealEstate.com/UpComingEvents.html. For additional information listen to one of Dr. Alan Rosenthal’s investment talks at FinancialHealthRealEstate.com/InvestmentTalks.html. ©2008 Financial Health Real Estate, Inc.