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. Residential Mortgage-Backed Security ...

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

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

    A type of promissory note that is associated with a particular ...
  4. Interest

    1. The charge for the privilege of borrowing money, typically ...
  5. Interest Rate

    The amount charged, expressed as a percentage of principal, by ...
  6. Freddie Mac - Federal Home Loan ...

    A stockholder-owned, government-sponsored enterprise (GSE) chartered ...
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