I have a 2.25% 30-year mortgage. I don’t really understand who funds/invests in mortgage debt. I was wondering what happens to low interest mortgage debt when the FED rate is much higher than my mortgage interest. Do investors get stuck holding the bag for 30-years?
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>Do investors get stuck holding the bag for 30-years?
Sure, but it’s still income. It’s just not as high of an income as they could get if they bought a mortgage now, that has a higher interest rate. And there’s always the possibility that they can still sell it to someone else if they bundle it with enough other mortgages and then invest in something that will get them a higher rate.
It’s not like they suddenly aren’t getting paid just because the fed raised rates.
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