Relocation Mortgage - Relo

AAA

DEFINITION of 'Relocation Mortgage - Relo'

A type of mortgage that is designed for relocating/transferring employees. Corporations sometime make special mortgages available for relocating employees in an effort to make the moving process easier and more economical. Oftentimes, there are bonuses for the employee, such as the company paying the closing costs. Some mortgage companies specialize in offering relo mortgages.

INVESTOPEDIA EXPLAINS 'Relocation Mortgage - Relo'

Historical data shows that employees who relocate for their jobs are likely to relocate repeatedly at predictable time intervals; therefore, relo mortgages have more predictable prepayment characteristics than non-relo mortgages. Because the prepayment characteristics of any mortgage-backed security (MBS) are very important to its valuation by traders, the more predictable prepayment characteristics of MBSs backed by relo mortgages allow relo MBSs to trade at a premium relative to other MBSs.

RELATED TERMS
  1. Mortgage

    A debt instrument, secured by the collateral of specified real ...
  2. Prepayment

    The satisfaction of a debt or installment payment before its ...
  3. Closing Costs

    The expenses, over and above the price of the property that buyers ...
  4. Purchase Mortgage Market

    A mortgage market for home financing transactions. The primary ...
  5. Mortgage-Backed Security (MBS)

    A type of asset-backed security that is secured by a mortgage ...
  6. Mortgage Banker

    A company, individual or institution that originates mortgages. ...
Related Articles
  1. 4 Steps To Attaining A Mortgage
    Credit & Loans

    4 Steps To Attaining A Mortgage

  2. How Mortgage Refinancing Affects Your ...
    Credit & Loans

    How Mortgage Refinancing Affects Your ...

  3. Make A Risk-Based Mortgage Decision
    Options & Futures

    Make A Risk-Based Mortgage Decision

  4. Finding And Investing In FHA Condos
    Investing Basics

    Finding And Investing In FHA Condos

comments powered by Disqus
Hot Definitions
  1. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  2. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  3. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  4. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  5. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  6. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
Trading Center