Where Does the Money for Your Mortgage Loan Really Come From?

If you're considering a mortgage loan, you might wonder where the money actually comes from. It’s not as simple as walking into your neighborhood bank and getting a loan directly from their vault, like it used to be decades ago. Today, the mortgage lending process is part of a larger, more complex system involving major institutions like Fannie Mae, Freddie Mac, and Ginnie Mae. Let’s take a closer look at how it all works. The Big Players: Fannie Mae, Freddie Mac, and Ginnie Mae In today’s mortgage industry, most of the money for home loans originates from three major government-sponsored…
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