The American mortgage
Chapter 1
The birth of the 30-year loan
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Chapter 2
How the money actually flows
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Chapter 3
The invisible giant in the background
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Chapter 4
Navigating your mortgage choices
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YOUR GOAL
Master of The American mortgage
Ch 2 · How the money actually flows
sloane American Mortgage Money Flow
Your home loan's approved, yeah! (But it's quickly sold away!) To Fannie or Freddie's hands, (Then investors worldwide will pay!)
Fun Fact
Interest math: In the first year of a 30-year mortgage, over eighty percent of your monthly payment goes toward interest, not the house itself.
Glossary
securitization (noun)
The process of pooling debt into financial instruments to sell them to investors. In 1970, Ginnie Mae issued the first mortgage-backed security, permanently changing how capital reaches home buyers.
The process of pooling debt into financial instruments to sell them to investors. In 1970, Ginnie Mae issued the first mortgage-backed security, permanently changing how capital reaches home buyers.
Quiz
In the early years of a 30-year mortgage, where does the majority of your monthly payment go?
Quiz
If you make a larger down payment on a home, how does it affect your monthly payments?