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alternative mortgage instrument

   Also found in: Acronyms 0.01 sec.
alternative mortgage instrument
Any mortgage other than a fixed-rate, fixed-term, fully amortizing mortgage.


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Because lenders set qualification standards in terms of the ratio of current values, and because borrowers had no alternative mortgage instrument to make housing more affordable, those unable to provide a larger down payment were constrained to purchase less costly houses (or to forgo their purchase).
 
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