Mortgage Markets

A mortgage is a form of debt that finances investment in property The debt is secured by the property. The mortgage is the difference between the down payment and the value to be paid for the property. Financial institutions such as savings institutions and mortgage companies originate mortgages. They accept mortgage applications and assess the creditworthiness of the applicants. The mortgage contract specifies the mortgage rate, the maturity, and the collateral that is backing the loan. The originator charges an origination fee. The originator may earn a profit from the difference between the mortgage rate and the rate that it paid to obtain funds....