What Are Some of the Benefits of Investing in Mortgages?
One of the benefits of investing in mortgages is the low rate of risk attached to mortgages compared to other types of securities. Mortgage loans are secured against the property the loans were used to purchase. Since mortgages are guaranteed against property as collateral, investors are protected against loan default. The property market is generally deemed more stable than other investment markets, and this protection for mortgages is likely to hold. Income from mortgages is also more constant and can increase in value over time due to changes in variable interest rates.