Aren’t banks trying to make money like every other business? If ROI on mortgages is only 2.5%, but market investments are 7%+, why do banks lend out mortgages at all? Is it a low risk thing? How do banks decide how much of their portfolio goes toward lending out mortgages?
In: Economics
Depending on where you are in the world, the fees banks charge on mortgages make it worthwhile.
[this site](https://www.creditkarma.com/home-loans/i/fees-when-buying-home) shows some of the fees you might expect from a mortgage in the US.
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