Definition
The market where existing mortgages are bought and sold between lenders, investors, and government-sponsored enterprises like Fannie Mae and Freddie Mac. The secondary market provides liquidity to mortgage lenders, allowing them to originate new loans. It also influences interest rates, as investors demand varies based on economic conditions.
Related Mortgage Terms
- Conforming Loan
A mortgage that meets the guidelines set by Fannie Mae and Freddie Mac, includin...
- Fannie Mae
The Federal National Mortgage Association (Fannie Mae) is a government-sponsored...
- Freddie Mac
The Federal Home Loan Mortgage Corporation (Freddie Mac) is a government-sponsor...
- Amortization
The process of paying off a mortgage through regular monthly payments of princip...
- Annual Percentage Rate (APR)
The total annual cost of a mortgage expressed as a percentage, including the int...
Understanding mortgage terminology helps you compare loan offers and make informed decisions. Use our mortgage calculator to see how these terms affect your monthly payment.