Government Programs for Residential Real Property

A mortgage is a debt instrument given by the borrower of money against real property. Any breech of the conditions of the mortgage contract entitles the lender to demand full pay ment on the contract.1 In most instances, of course, such demands are made only when the borrower fails to make the prescribed payments for quite some period of time. Nevertheless, a breech of contract on a governmentally guaranteed mortgage permits the lender to seek redress from the relevant governmental agency.

Real estate mortgages are issued in a variety of formats, and for a variety of terms. In the late1980s, however, the most prevalent formats are fixedterm/fixed rate, adjustable rate (ARM) mortgages. As an example, a A 30year fixedrate

1D. J. de Benedictis, The Complete Real Estate Adviser, 5th ed. (New York: Simon and Schuster, 1989), 181.

mortgage loan provides for repayment of the loan principal over 360 months at a fixedrate of interest over the life of the loan. A oneyear variablerate ARM loan may be structured so that it is renewab

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ominent role in the American housing market, the agency's activities have a major impact on the level of mortgage interest rates, and on the level of residential housing starts in the country. Datarelated to mortgage interest rates and housing starts are presented in Table 1, which may be found on the following page. Housing starts peaked in the United States in 1978, when over twomillion new units were started.5 The level of housing starts dropped precipitiously in the early1980s, before they began to recover. Residential housing starts in the United __________ 5Council of Economic Advisers, Economic Indicators (Washington: United States Government Printing Office, August 1989), 19. 7 Table 1 Housing Starts and Mortgage Interest Rates United States 19761988 ============================================================= Year Housing Starts Mortgage Rate (000s) (%)    1976 1,538 9.00 1977 1,987 9.02 1978 2,020 9.56 1979
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Some common words found in the essay are:
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Approximate Word count = 3226
Approximate Pages = 13 (250 words per page)

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