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One aspect of home mortgages that you should be aware of is that there is a market for them, just as there are markets for tomatoes, potatoes, running shoes, or designer suits. Your mortgage, once you get it, can be sold later to FNMA ("Fannie Mae"). FNMA buys mortgages and, in some cases, also takes on the servicing of these loans after they are originated by the individual lenders. These loans usually carry the lowest interest rates.

Some lenders sell loans to funding sources other than FNMA, but usually these are types of loans that carry a higher rate of interest. Also, some banks and lenders hold their own loans (portfolio lending) and make their own credit and lending decisions. These interest rates vary widely.

If your loan is sold, you still have the same term, and the same loan; you just make the check out to another institution. You will receive written instructions from both lenders notifying you when the loan will be transferred and other relevant payment information.