Primary Mortgage Market

Definition: The primary mortgage market is where lenders originate loans to borrowers.

Example

A bank lends money directly to a homebuyer to purchase a property.

Keep the distinction clear

Primary describes the origination stage. The later sale of the existing loan takes place in the secondary mortgage market and does not create a new purchase loan for that borrower.

Related terms

Borrower · Mortgage Lender · Secondary Mortgage Market

Keep studying

Primary and Secondary Mortgage Markets: Fannie Mae, Freddie Mac, and Ginnie Mae

References: Fannie Mae: role in housing finance

Pronunciation (US): PRY-mair-ee MOR-gij MAR-kit (capitals show stress)

Pronunciation reference: Merriam-Webster