Banks became popular and the lender of choice for most Americans, especially when the U.S. government starting promoting home ownership in the 1950's with the introduction of the 30-year mortgage.
Most Banks Sell Their Notes to Private Investors
Most banks sell their mortgages soon after they originate the loan. Until recently, most were sold to private investors, either directly or through REIT's and/or mortgage backed securities. These were pools of mortgages, all combined and many times jointly owned by multiple investors.
The quasi-governmental mortgage companies FannieMae and FreddieMac now buy 95% or more of the bank loans.
Where Did the Private Money Go?
Private money is still investing in first-position mortgages. The difference is the money is now backed directly by individual properties.
Want to learn more?
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- Increasing security of your loan
- Why Private Mortgages are a hedge against taxes
- Long Term Income through Private Mortgages
- Using Balloon Payments to shorten the length of the loan
- Use Private Mortgages for Estate Planning
- How to Document Your Loan for maximum security
Want to learn even more?!? The CALL ME! I'd love to talk with you.
David Safeer 801.510.3566
There's no doubting that rates won't stay this low forever - so if you're confident in your job and have a deposit it is a good time to invest.
ReplyDeleteI agree. It is a great time to invest if you have the assets, credit score, etc. and work with people who know what they are doing to buy and hold real estate.
ReplyDeleteNow more than ever is a great time to invest, I must agrre with your article.
ReplyDelete