What is Secondary Market?
The secondary market is where mortgage loans are bought and sold among investors, providing liquidity for lenders to originate new loans.
The secondary market is the marketplace where mortgage loans are traded after origination. Lenders sell loans to investors such as government-sponsored enterprises or private firms, which frees up capital to make more loans. Borrowers meet the secondary market indirectly because its demand affects interest rates and loan program availability. Watch for changes in your servicer if your loan is sold. The secondary market does not change your loan terms, but it can influence whether certain loan types are offered or priced competitively.
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