Relocation Mortgage - Relo

外汇网2021-06-19 16:00:54 153

A type of mortgage that is designed for relocating/transferring employees. Corporations sometime make special mortgages available for relocating employees in an effort to make the moving process easier and more economical. Oftentimes, there are bonuses for the employee, such as the company paying the closing costs. Some mortgage companies specialize in offering relo mortgages.

Historical data shows that employees who relocate for their jobs are likely to relocate repeatedly at pdictable time intervals; therefore, relo mortgages have more pdictable ppayment characteristics than non-relo mortgages. Because the ppayment characteristics of any mortgage-backed security (抵押贷款支持债券) are very important to its valuation by traders, the more pdictable ppayment characteristics of 抵押贷款支持债券s backed by relo mortgages allow relo 抵押贷款支持债券s to trade at a pmium relative to other 抵押贷款支持债券s.

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