Mortgage Company Sold My Loan to Fannie Mae and Again to Another Mortgage Company
Your mortgage lender likes when you make your payments each calendar month. Just your lender often doesn't actually make the big bucks from your loan until it sells it to Freddie Mac, Fannie Mae or some other financial institution. And so don't be surprised if some time from at present, you lot go a notice in the post telling you lot that your lender has sold your loan to another financial institution.
Bank check out our mortgage reckoner.
If y'all receive this kind of notice, not to worry. Yous shouldn't be surprised or alarmed, even if you were aiming to pay off your mortgage early on. Your life won't change drastically when your bank sells your loan. You'll even so make the same payments, just to a unlike accost.
Why Banks Sell Mortgages
Banks make coin off your mortgage loan by collecting interest payments. Hopefully you did inquiry before you lot purchased your home to figure out which mortgage was best for your financial situation. Say y'all've taken out a 30-year fixed-rate loan of $200,000 at an involvement rate of iv percent. You'll pay more than $140,000 in interest if you take the full three decades to pay off your loan.
That might seem like good money. But waiting 30 years to collect a full of $140,000 doesn't always seem that enticing to banks. So if they want to brand a quicker turn a profit, they'll sell your mortgage loan for a commission. That provides instant cash.
Your lender might also sell your loan every bit a way of freeing upwardly capital. When banks sell loans, they are really selling the servicing rights to them. This frees upwardly credit lines and allows lenders to laissez passer out coin to other borrowers (and brand coin on the fees for originating a mortgage).
Remember, lenders and banks might be making large profits, but they don't have a limitless amount of coin lying around. They sometimes demand to ditch existing loans – such as your mortgage – to be able to have enough greenbacks to lend to other customers.
What Information technology Means For You
When your lender sells your loan, you'll nevertheless brand the same payment every month. You've already borrowed the coin and closed the loan, afterwards all. Even if your loan servicer has their own mortgage rates, having a new servicer doesn't change what yous've borrowed, what interest rate you've agreed to and how big your monthly payment is.
One time your lender sells your loan, it will ship you a loan ownership transfer notice. The establishment that purchased your loan must so notify you inside 30 days of the official date of the alter. This notice will include the proper noun of the company that now owns your mortgage loan, its address and its telephone number.
The only time issues might arise is if your onetime or new servicer doesn't notify yous in time almost the new address to which you need to send your payments. After all, you don't want a late payment on your record considering you sent your payment to your old servicer and non your new one. If you do accept a complaint about late notices or any other issue relating to the selling of your loan, don't be shy: Report your complaint to both your old lender and your new i. Then file a mortgage complaint form with the Consumer Financial Protection Agency.
And if y'all practise receive notice that your loan has been sold, don't panic. Just make certain you know who owns your loan at present and where your payments demand to get each month.
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Source: https://smartasset.com/mortgage/your-mortgage-loan-has-been-sold-now-what
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