Mortgage REITs involve investment and ownership of property mortgages. This particular type of REITs loan money for mortgages to owners of real estate, or invest in (purchase) existing mortgages or mortgage backed securities. A Mortgage REITs revenues are generated mostly by the interest earned on the mortgage loans.
This particular type of REITs loan money for mortgages to owners of real estate
The acronyms REIT stand for Real Estate Investment Trusts. They pool money from investors for the purposes of purchasing real property or in the case of mortgage REITs for the purpose of making money available for mortgage loans.
REITs will offer high yields to investors and a liquid method of investing in real estate. They also receive some tax considerations.
Money from mortgage REIT investors has allowed us to offer borrowers thousands of new loan programs, like Zero Down Mortgage / No Money Down Mortgage, Pay Option ARM, 40 year mortgage and more.