The bank is getting the interest on the amount which has been financed. So, it is a business / source of income to them. Plus it adds a product to their portfolio. read more
Reverse mortgage options. There are three types of reverse mortgages. They are: Single-purpose. Offered by local, state, and non-profit agencies, this reverse mortgage is used to fund a single purpose, such as paying for home repairs or property taxes. Home Equity Conversion Mortgage (HECM). read more
If the bank lending rate is 3 percent and the interest rate on your loan is 4.5 percent, the lender is making 1.5 percent on the loan. Mortgage Backed Securities Lenders bundle safer, less profitable mortgages with riskier higher profit ones into packages called mortgage backed securities. read more