Thursday, June 7, 2012

What are the advantages of conduit loans?


The advantages of conduit loans are unique for each player involved. A borrower can lock in a low interest rate, often lower than market standards, in exchange for accepting a less flexible mortgage.
The lender has the opportunity to resell the loan on the security market, freeing up capital instead of leaving it tied into a loan. The investor, the final player, has a chance to make a profit from mortgage lending without ever issuing a loan. All of these advantages hinge on the assumption the borrower can repay the debt on time.



Ref : www.loan.com
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