Pass-through rate

What is Pass-through rate?

Pass-through rate meaning in finance terminology / glossary / dictionary is:
Pass-through rate is the yield paid to the investors of a mortgage-backed security. The pass-through rate is lower than the average interest rate paid on the underlying mortgages, because guarantee and management fees also must be paid out of the interest income generated by them.

 

reference: MortgageLoan.com

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