When you borrow money to take out a mortgage, you owe principal and interest to some entity that owns your mortgage.
These entities include investors such as banks, hedge funds, pension funds, governments, Fannie Mae and Freddie Mac.
Just like investing in stocks and bonds, owning mortgages gives investors the opportunity to earn money.
Sometimes investors decide to sell their investments, and that includes your mortgage. Does this selling activity have any affect on you? Learn what it means when your mortgage is sold in my Mortgage-Calc.com article.