What is the 'Primary Mortgage Market'

The primary mortgage market is the market where borrowers and mortgage originators come together to negotiate terms and effectuate mortgage transaction. Mortgage brokers, mortgage bankers, credit unions and banks are all part of the primary mortgage market.

BREAKING DOWN 'Primary Mortgage Market'

After being originated in the primary mortgage market, most mortgages are sold into the secondary mortgage market. Unknown to many borrowers is that their mortgages usually end up as part of a package of mortgages that comprise a mortgage-backed security (MBS), asset-backed security (ABS) or collateralized debt obligation (CDO).

RELATED TERMS
  1. Mortgage Originator

    A mortgage originator is an institution or individual that works ...
  2. Second Mortgage

    A type of subordinate mortgage made while an original mortgage ...
  3. Third-Party Mortgage Originator

    1. A person or company involved in the process of marketing mortgages ...
  4. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  5. Secondary Mortgage Market

    The market where mortgage loans and servicing rights are bought ...
  6. Mortgage Rate

    The rate of interest charged on a mortgage. Mortgage rates are ...
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