• A loan secured by the collateral of some specified real estate property which obliges the borrower to make a predetermined series of payments.
• Refers to the collateral (an asset) that is pledged as security, against the loan.
• A loan made to finance the purchase of real estate, which serves as the collateral for the loan.
• Is a pledge of real property in order to obtain a loan: It is not the note itself. The loan instrument is a note or bond. However, these two terms are frequently used synonymously.
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| ||Additional hedge: A protection against borrower fallout risk in the Mortgage pipeline.|
| ||Adjustable rate mortgage: Is a loan which has a coupon or interest rate that is subject to change on predetermined reset dates. These loans use interest rate indices as the benchmark rate. Adjustable Rate Mortgages come in many variations. Typically, the reset dates recur every 1, 3, or 5 years; but there are other periods used as well. These loans may have cap and floor features which constrain each reset change in interest rates. There may also be lifetime cap and floor features. Adjustable Rate Mortgages may be strictly amortizing though some have negative amortization features.A Mortgage whose interest rate changes periodically based on the upward or downward movement of a specified benchmark, e.g. six month or one-year Treasury bills.|
| ||Agency: Is a security issued by a government organization but not the treasury. These organizations include: the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac), the Federal National Mortgage Association (FNMA or Fannie Mae), the Government National Mortgage Association (GNMA or Ginnie Mae).|
| ||Agency pass throughs: Mortgage pass-through securities whose principal and interest payments are guaranteed by government agencies, such as the Government National Mortgage Association ( Ginnie Mae ), Federal Home Loan Mortgage Corporation ( Freddie Mac ) and Federal National Mortgage Association ( Fannie Mae ).|
| ||Alternative mortgage instruments: Variations of Mortgage instruments such as adjustable-rate and variable-rate mortgages, graduated-payment mortgages, reverse-annuity mortgages, and several seldom-used variations.|
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