Guaranteed Mortgage Certificate - GMC


DEFINITION of 'Guaranteed Mortgage Certificate - GMC'

A bond backed by a pool of mortgages. These bonds are issued by the Federal Home Loan Mortgage Corporation (Freddie Mac). These bonds pay out both interest and principal on a semiannual basis.

BREAKING DOWN 'Guaranteed Mortgage Certificate - GMC'

The pool is made up of residential mortgages. If the mortgage is paid off at a faster than anticipated rate, the investor will still receive the entire principal amount of their investment.

  1. Interest

    The charge for the privilege of borrowing money, typically expressed ...
  2. Residential Mortgage-Backed Security ...

    A type of security whose cash flows come from residential debt ...
  3. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  4. Mortgage-Backed Note

    A type of promissory note that is associated with a particular ...
  5. Fannie Mae - Federal National Mortgage ...

    A government-sponsored enterprise (GSE) that was created in 1938 ...
  6. Freddie Mac - Federal Home Loan ...

    A stockholder-owned, government-sponsored enterprise (GSE) chartered ...
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  1. Do FHA loans have prepayment penalties?

    Unlike subprime mortgages issued by some conventional commercial lenders, Federal Housing Administration (FHA) loans do not ... Read Full Answer >>
  2. Can FHA loans be refinanced?

    Federal Housing Administration (FHA) loans can be refinanced in several ways. According to the U.S. Department of Housing ... Read Full Answer >>
  3. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
  4. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>
  5. How many FHA loans can I have?

    Generally, the Federal Housing Administration (FHA) does not insure more than one mortgage per borrower. This is to prevent ... Read Full Answer >>
  6. Are FHA loans assumable?

    Loans insured by the Federal Housing Administration (FHA) on or after Dec. 15, 1989, are assumable by qualifying borrowers. ... Read Full Answer >>

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