why does lenders transfer loan/mortgage and what’s in it for them?
In: Economics
If you owe me a certain amount of money at a certain interest rate, it’ll take me a certain amount of time to get paid.
If I want money available sooner, I can sell your debt to someone else: they pay me, and you owe them now.
They pay me immediately, so I’m happy—I have money in my pocket to work with. They might offer you a lower interest rate—your loan/mortgage payments might be lower with them than they were with me. They still make a profit from you, because the interest rate is still *something*, so they’re happy as well.
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