Mortgage Information | Student Loans | Auto Loans
Mortgage and Loan Terms Glossary | Doc Loan Home
Free Loan Advice and Financial Information  
Browse by Letter

Loan and Mortgage Terms Glossary

Stripped Mortgage-Backed Securities:

Mortgage pass-through securities in which the cash flow from the underlying mortgages is separated. All principal is diverted into securities that pay only principal back to the investors, while all interest is diverted into securities that pay only interest. The interest-only (io) and principal-only (po) securities are used as hedging tools to provide greater stability for mortgage portfolios during periods of fluctuating interest rates.

Contact | Advertising Information | Other Resources

Copyright 2002-2006