Re: Home Loans
I can kinda' explain it. The 'bank, loan broker, investor, whoever' has a fund of money. They invest in home loans till the money is gone. So now they're holding paper worth a
:caca:load of money ($400,000 worth 900,00 over 30 years). Then they sell the loans to a 'bank, loan broker, investor, whoever' at a profit. The 'bank, loan broker, investor, whoever' buys it at a profit because they don't have to do the legwork on the loan. And they are putting it into another fund, long term or whatever. So now you have more money than you started with and it starts all over again. Of course they don't wait to run out of money, it's a revolving door program.