1. Where is All That Money Made by Mortgage Companies?
... off of their savings and weather the storm? The answer is boring, but it is also the harsh reality faced by those who make money by loaning money. Competitive lending practices of the last 15 years have kept interest rates at bay. In the 1980s home owners were faced with interest rates on their mortgages that were double digits as a standard. Nowadays, those ... more plentiful. With larger loan sales come greater risks, but less surety. In other words, the cap on interest rates imposed by both law and competition keep mortgage companies from charging enough interest to offset those who ...
- Word Count: 443
- Approx Pages: 2
- Grade Level: High School