So, let's say I take a mortgage from a bank to buy a house. The bank here will have a bond that says I will either repay all my debt with interest as per a set schedule or the bank can take over my property and sell it to get its money back. Now the bank sells these bonds to a secondary company who collects many such bonds, groups them accordingly and creates a pool. Now the secondary company sells bonds based on these pools to investors who receive a certain payment annually or semi-annually. So my doubt is what happens if I decide to pay off my mortgage early? in that case who pays off the investors for the remaining years, or am I misunderstanding certain parts of this process? If I am wrong, where and why?
P.S. I am extremely new to finances and just getting started with learning about everything, so sorry if all this seems a bit non-sensical.
Submitted December 13, 2017 at 11:26PM by Kid_me_not http://ift.tt/2Bo6t2o
