It’s a fact that banks make “a lot of money” initially on mortgage loans, by either selling them or raking in the interest payments. It’s also a fact that they have lost a lot of money in the last 7 tyears via foreclosure and property devaluation. Without being too far out there I am actually amazed that the banks are offering 20 year loans @ 3.75% with no points and such. If you think about it that is less than a point above the 10 year rate. Wow, think about it, do you really think they want to hold that loan over the next 20 years when interest rates are “guaranteed” to go up.
