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Cap & collar mortgage |
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Cap & collar mortgageThis is a mortgage that has both a top and bottom limit set for the interest rate. It is a very safe and risk free type of mortgage, as you are protected against intetrest rate rises above a certain point, but you are losing some of the potential gains if interest rates drop.Cap & collar mortgage Similar MatchesShared appreciation mortgageShared appreciation mortgageA mortgage in which a borrower pays a below normal rate of interest to the lender on the understanding that the latter shares a proportion of the appreciation of the property. Open End MortgageOpen End MortgageA mortgage permitting the mortgagor to borrow additional money under the same mortgage, with certain conditions, usually as to the assets of the mortgage. Capped rate mortgageCapped rate mortgageAs with all variable rate mortgages, the rate follows the lender's SVR up and down. The difference with this type of mortgage is that the rate is guaranteed not to go above the level at which it is 'capped'. This type of mortgage is popular in times of steadily rising interest rates. Stripped mortgage backed securities (SMBS)Stripped mortgage backed securities (SMBS)Securities that redistribute the cash flows from the underlying generic MBS collateral into the principal and interest components of the MBS to enhance their attractiveness to different groups of investors. Pension mortgagePension mortgageA type of interest-only mortgage where your mortgage payments are combined with payments into your personal pension fund. This is designed to mature on your retirement, so the mortgage loan term must end between the ages of 50 and 75 unless the borrower is in an industry where the Inland Revenue permits earlier retirement. The pension also needs to provide you with an income during retirement, so only twenty five percent of the pension fund can be taken as a lump sum to pay of your mortgage. Further SuggestionsWraparound mortgageInsured Mortgage Shared Appreciation Mortgage (SAM) Mortgage confirmation Government National Mortgage Association mortgage agreement in principle Mortgage Backed Securities Clearing Corporation (MBSCC) discounted rate mortgage Mortgage types Mortgage deed Take back mortgage Index tracker mortgage Foreign currency mortgage Second mortgage lending Wraparound mortgage Self amortizing mortgage Reverse mortgage repayment mortgage Mortgage Company Shared appreciation mortgage variable rate mortgage Government National Mortgage Association (Ginnie Mae) Federal National Mortgage Association Private Mortgage Insurance mortgage life insurance |
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