Pass-through rate(redirected from Pass Through Rate)
The net interest rate passed through to investors after deducting servicing, management, and guarantee fees from the gross mortgage coupon.
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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.
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