Posted on: 08th May, 2010 01:58 am
Does Preppayment Risk is higher in RMBS?
Hi Rajni,
As far as I know, there is no higher risk associated with Residential mortgage-backed securities (RMBS). If you pay off your loan within 5 years of taking it, then you may have to pay a penalty.
As far as I know, there is no higher risk associated with Residential mortgage-backed securities (RMBS). If you pay off your loan within 5 years of taking it, then you may have to pay a penalty.