fixed-rate mortgage
101Government National Mortgage Association — The Government National Mortgage Association (GNMA, also known as Ginnie Mae) is a U.S. government owned corporation within the Department of Housing and Urban Development (HUD).Ginnie Mae provides guarantees on mortgage backed securities (MBS)… …
102Real Estate Mortgage Investment Conduit — Real Estate Mortgage Investment Conduits, or REMICs, are a type of special purpose vehicle used for the pooling of mortgage loans and issuance of mortgage backed securities. They are defined under the United States Internal Revenue Code (Tax… …
103Interest rate derivative — An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.The interest rate derivatives market is the largest derivatives market in the… …
104Interest Rate Cap Structure — Limits to the interest rate on an adjustable rate loan frequently associated with a mortgage. There are several different types of interest rate cap structures including an initial, periodic and lifetime interest rate cap structure. The initial… …
105Closed-End Mortgage — A restrictive type of mortgage that cannot be prepaid, renegotiated or refinanced without paying breakage costs to the lender. This type of mortgage makes sense for homebuyers who are not planning to move anytime soon and will accept a longer… …
106Lenders mortgage insurance — (LMI), also known as Private mortgage insurance (PMI) in the US, is insurance payable to a lender or trustee for a pool of securities that may be required when taking out a mortgage loan. It is insurance to offset losses in the case where a… …
107Graduation Rate — The percentage increase in the monthly payment on a graduated payment mortgage. The increase occurs at set intervals, usually annually. The interest rate on a graduated payment mortgage is fixed for the life of the loan. The initial monthly… …
108Floating Interest Rate — An interest rate that is allowed to move up and down with the rest of the market or along with an index. This contrasts with a fixed interest rate, in which the interest rate of a debt obligation stays constant for the duration of the agreement.… …
109Home Mortgage — A loan given by a bank, mortgage company or other financial institution for the purchase of a primary or investment residence. In a home mortgage, the owner of the property (the borrower) transfers the title to the lender on the condition that… …
110Participation Mortgage — A participation mortgage is a type of mortgage that allows the lender to share in part of the income or resale proceeds. The lender participates in the income of the mortgaged property beyond a fixed return, or receives a yield on the loan in… …
