| No-Cost Mortgage |
| A mortgage refinancing situation in which the lender pays the borrower's loan settlement costs and then extends a new mortgage loan. A lender does this in exchange for charging the borrower a higher interest rate. When the lender then sells this mortgage into the secondary mortgage market, the price it will receive for the mortgage is based on the interest rate on the mortgage. A mortgage broker would do the same based on the size of the rebate they might receive from a lender. |
Monday, October 5, 2009
No-Cost Mortgage
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