Im trying to understand the 2008 Financial Crisis, does this make sense?

From my understanding in steps with examples of x values:

Banks issued a lot of loans which did not have any serious prerequisites, whilst at the same time, individuals were being encouraged to become homeowners. These loans had a small interest too to be repaid.

>Bank loans out $100k to a borrower and hence creating household debt. Borrower will repay the bank at 1% simple interest yearly over 20 years. Total repayment is $120k

The banks then bundle these loans and sell them to investors. Due to them being grouped, investors believed that most of them would pay even if a few defaulted. It also received an AAA rating to boost confidence.

Investors bought these loans at a slightly higher price compared to what the banks paid out in loans.

>Investors pay $550k for a group of 5 loans as it essentially guarantees them $50k due to huge confidence in the mortgage market, paid at a steady rate safely.

(Over here, I don’t understand how they were able to sell the loans for even higher due to housing trends typically going upwards since the sale had already been made)

When a lot of people couldn’t repay during an economic downturn, those who bet on the housing market faced the costs.