A mortgage can be "sold" to an investor after it is taken out. To turn the future payments into cash, the lender needs to "lower the value" of the loan. This means that "one dollar in the future is not worth the same as one dollar today".
These are questions that the above text answers:
1. What is the process of selling a mortgage to an investor called?
2. Why does a lender need to lower the value of a loan to turn future payments into cash?
3. What does it mean when it is said that "one dollar in the future is not worth the same as one dollar today"?
4. How can a mortgage be converted into cash?
5. What is the purpose of mortgage securitization?
6. What is an Adjustable Rate Mortgage (ARM)?
7. What are some features of an Adjustable Rate Mortgage (ARM)?
8. What is the value of lowering the value of home loans?
9. What is the significance of understanding the value of lowering the value of home loans?