Finance
What is the secondary mortgage market and how does it affect Nevada home buyers?
AA marketplace for second mortgages and HELOCs in Nevada
BThe market where lenders sell mortgage loans to investors (Fannie Mae, Freddie Mac, Ginnie Mae), providing liquidity that keeps Nevada mortgage rates competitive✓ Correct
CA market for foreclosed properties in Nevada
DThe market for junior liens behind primary mortgages
Explanation
The secondary mortgage market allows lenders to sell mortgages they originate to secondary market entities (Fannie Mae, Freddie Mac, Ginnie Mae) and investors. This provides liquidity, allowing lenders to make more loans and keeping mortgage rates available and competitive in Nevada.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
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