The primary mortgage market refers to where most mortgage loans originate from banks, mortgage brokers, and credit unions, usually in the form of adjustable rate mortgages. The secondary mortgage market involves the buying and selling of loans between investors and originators and is pursued by individuals for large real estate projects rather than average homeowners. The document discusses the difference between obtaining a mortgage through the primary market directly from a lender versus the secondary market of loan exchanges between financial institutions.

1. What Are the Primary and
Secondary Mortgage Markets?
By: Charles Bradford Larchmont

2. What Are the Primary and Secondary Mortgage
Markets?
Longtime Larchmont, New York, resident Charles Bradford recently retired after spending more
than 15 years as the branch manager of LoanDepot/Mortgage Master, Inc. In this capacity, Charles
Bradford of Larchmont was responsible for initiating, underwriting, and closing loans in-house.

3. What Are the Primary and Secondary Mortgage
Markets?
When it comes to getting a mortgage, borrowers often have the option of obtaining a loan through
either the primary or secondary market.

4. What Are the Primary and Secondary Mortgage
Markets?
The primary mortgage market refers to where most mortgage loans originate. Such loans are
granted by mortgage bankers, banks, mortgage brokers, and credit unions, and they are usually
adjustable rate mortgage loans (ARM). ARM loans have a fixed rate for a certain amount of time,
after which the rate fluctuates on an annual basis. Loans from the primary mortgage market are
often ideal for the average borrower and, in most cases, these borrowers will be unaware that they
are dealing with mortgage loans from the primary market.

5. What Are the Primary and Secondary Mortgage
Markets?
Meanwhile, loans from the secondary mortgage market are bought and sold between mortgage
aggregators, investors, and mortgage originators. These loans and servicing rights are not
designed for the average borrower. Rather, they are predominantly pursued by individuals
associated with large real estate projects, such as for the construction of a large shopping center.