Pass-through rate

(redirected from Pass-Through Rates)

Pass-through rate

The net interest rate passed through to investors after deducting servicing, management, and guarantee fees from the gross mortgage coupon.

Pass-Through Rate

The interest rate that an investor in a mortgage-backed security receives. It is calculated as the weighted average interest rate on the mortgages underlying the security less management fees and other related expenses. Because of this, the pass-through rate is lower than the interest rate on the individual mortgages.