Mortgage Market Flashcards
1
Q
What are mortgages?
A
A long-term loan secured by real estate
A amortised loan whereby a fixed payment pays both principal and interest each month
2
Q
Characteristics of residential mortgages
A
Mortgage interest rates
Loan terms
Mortgage loan amortisation
3
Q
The state rate on a mortgage loan is determined by three rates
A
Market rates
Term : eg longer term mortgages have higher rates
Discount points
