2006-08-16 07:42:05 · 4 answers · asked by Lady D 3 in Business & Finance ➔ Renting & Real Estate
Honestly - whenever they think they can make a better profit by selling it.
If someone is usually late with their payments, they may want to ditch the loan because they worry you'll go into default. If you pay extra, they may not like that because they're not making the money they thought they would. If you pay the exact right amount on time every month, they may use that to help sell a block of other mortgages that aren't as desirable.
Mortgages aren't sold one-by-one. Other financial companies buy them in blocks, so don't take it personally.
2006-08-16 07:46:47 · answer #1 · answered by FozzieBear 7 · 0⤊ 0⤋
The lender can make an immediate premium of anywhere from 2.5 percent to four percent by selling your loan to wall street. This lets them turn around and do more loans and make more money without getting more money in deposits. Some lenders turn over their entire lending portfolio several times per year. This is also the main reason for the rise of the prepayment penalty: The lender gets a better price when they sell those.
They sell it when they think they can get the best price. Some wait until you've made three payments, some do it after one, a few sell them right away.
2006-08-16 14:47:59 · answer #2 · answered by Searchlight Crusade 5 · 0⤊ 0⤋
To make a profit, if they can sell your mortgage to another company for more than the original loan amount they show a net profit.
2006-08-16 07:47:45 · answer #3 · answered by master_akhkharu 3 · 0⤊ 0⤋
its not the mortgage company, its the lender (bank),thats how they make more money,don't worry it won't effect you..
2006-08-16 07:48:45 · answer #4 · answered by snoogans 5 · 0⤊ 0⤋