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Mortgages in sentence

375 examples of Mortgages in a sentence

For example, the US Treasury suggests that originators of mortgages should retain a “material” financial interest in the loans they make, in contrast to the recent practice of securitizing them.
For households, the main impact of lower interest rates is felt through mortgages.
This implies that QE would not reach, say, Spanish households, whose mortgages are indexed to short-term rates, which are already close to zero.
In the US, households have a prepayment option on their mortgages should interest rates fall.
Moreover, mortgages are usually securitized.
This implies that a fall in the rate at which bundles of mortgages can be sold on the market can have a strong impact on household spending, because lower long-term rates typically lead to waves of mortgage refinancing, leaving households with lower monthly payments – and thus higher disposable income.
In 2007, Lehman Brothers, AIG, and most other players in the financial markets were earning huge returns by trading derivatives backed by very risky mortgages.
The answer lies in a combination of “no recourse” mortgages and fast bankruptcy procedures.
Millions of American homes that were purchased with subprime mortgages have been foreclosed in recent years, forcing their owners, unable to service their debt, to leave.
But, as a result of no-recourse mortgages in many US states, the entire mortgage debt was then extinguished, even if the value of the home was too low to cover the balance still due.
Prime borrowers with good credit scores and investment-grade firms are not experiencing a credit crunch at this point, as the former have access to mortgages and consumer credit while the latter have access to bond and equity markets.
But non-prime borrowers – about one-third of US households – do not have much access to mortgages and credit cards.
The same holds for households, with millions of weaker and poorer borrowers defaulting on mortgages, credit cards, auto loans, student loans, and other forms of consumer credit.
Paying down debt on credit cards or mortgages also counts as saving – but increases in the value of existing assets like stocks or real estate do not, even though they increase the value of household wealth.
Mortgages became more widely available.
Rising house prices also allowed homeowners to refinance their mortgages, obtaining additional cash to spend on other things.
Home prices fell 40%, completely wiping out the equity of one-third of all homeowners with mortgages.
One place to start is the tax deduction for interest payments on home mortgages.
The deduction is currently available on mortgages of up to $1 million, this forming a key component of America’s excessive incentives to buy houses – a policy eschewed by most other industrialized countries.
After almost a quarter-century of so-called “liberal” economic policy, everything from imported goods to bank mortgages are still far more expensive than in the West.
The interest rate charged on home mortgages reflects the long-term yield on Treasury bonds, with the rate for 30-year mortgages rising a full percentage point during the past 20 months.
Mortgages in Swiss francs and car loans in Japanese yen have been common throughout the region.
What started with subprime mortgages spread to all collateralized debt obligations, endangered municipal and mortgage insurance and reinsurance companies and threatened to unravel the multi-trillion-dollar credit default swap market.
The asset-backed commercial paper market came to a standstill and the special investment vehicles set up by banks to get mortgages off their balance sheets could no longer get outside financing.
Collateralized debt obligations (CDOs, mainly tied to mortgages) made a new population of aspiring homeowners supposedly creditworthy by enabling the originating banks to sell “sub-prime” debt to other investors.
Before securitization, banks typically held mortgages; now they could get them off their books.
Banks’ balance sheets were by then filled with vast amounts of risky mortgages, packaged in complicated forms that made the risks hard to evaluate.
Banks began to slow their new lending, and defaults on mortgages began to rise.
Throughout the world, there may be some similar effects, to the extent that foreign banks also hold bad US mortgages on their balance sheets, or in the worst case, if a general financial crisis takes hold.
As a result, one-third of all American homeowners with mortgages are already “underwater” – their mortgage debt exceeds the value of the house.
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