im thinkin the seller profits the mortgage payments
2007-08-13 04:36:49 · 5 answers · asked by see see 2 in Business & Finance ➔ Renting & Real Estate
Actually, no. The mortgage company sells your loan to investors. The investors earn the interest that you pay with your payments and the principal you pay goes to the investor which was their original investment.
The mortgage company/bank makes money on fees and points that you pay when you obtain a mortgage.
2007-08-13 04:45:14 · answer #1 · answered by porkchop 5 · 1⤊ 0⤋
The bank. The seller got paid in full at closing. The bank collects some of the interest with each payment and that's their profit.
Some mortgages do get sold but that's definitely not the case with all mortgages. Many are held by the originating bank or mortgage company.
2007-08-13 11:50:15 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
The seller receives their money for the sale of the house from the mortgage company. They are the ones out the actual cash until you make the payments to repay them. They charge interest on that money as a way of making money since they cannot get interest on it with a bank or other investments. Your mortgage becomes the investment. So the principal part of the mortgage payment is a repayment to the mortgage company.
2007-08-13 11:46:22 · answer #3 · answered by magnolia 5 · 1⤊ 0⤋
The bank still collects the payment, and therefore gets the interest made on each payment. It's how the bank makes their money. The seller got paid in full at closing. If the loan is sold on the secondary market, the new bank gets paid the interest on the payments...etc...
2007-08-13 18:06:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Nobody
2007-08-16 21:25:59 · answer #5 · answered by Tiffannie A 1 · 0⤊ 0⤋