What Are Residential Mortgage-Backed Securities (RMBS)?
Updated 21 days ago (March 6, 2026)
RMBS are mortgage-backed securities that use household residences as the underlying guarantees for interest paid on the loans used to create the securities. Investors should be aware that compared to other types of MBS, RMBS tend to have lower rates of default and higher interest rates, due to the high demand for personal residences that necessitate these types of mortgage.
Financial Disclaimer: Tellus provides this content for informational purposes only. This is not financial advice. Financial returns and mortgage terms vary based on individual circumstances and market conditions. Consult a qualified financial advisor before making financial or borrowing decisions.