Review: Backed and Packed with Good Information!
Rating: 5 out of 5
Date: 05 25, 2014
Very through information provided by Justin Adams! So what is Mortgage Backed Securities?; its a type of bond that has been formed from a collection of mortgages. Still confused? Yeah well this guide had a wonderful graph to enhance the definition. This step-by-step highlights who issues these types of mortgages, how these mortgages work, and the risk in purchasing this type of mortgage. What I found interesting is that there are prepayment risk associated with this type of mortgage. Usually mortgages you can pay off early if in the position to do so; however with this mortgage since there are a lot of mortgages composed together, then if a person sales their house, they will pay back the full amount of the mortgage and yes you will get all of your money, but will loose out on the back end in regards to the future interest component of this investment. Other risk are also explored; default risk, and a extension risk. Want to know how to buy a MBS? This guide explains it all and provides a brief yet detailed outline on how to achieve this investment. This guide is packed with powerful information and backed with good strong supporting evidence allowing for a good understanding on what Mortgage Backed Securities are and how they function. If this is your area of interest; than I highly recommend you reading this book-guide! Two thumbs up for Justin Adams!