Reported 11 months ago
High mortgage rates are causing challenges for many Americans, but one alternative is to invest in mortgage bonds. These bonds, which generate yields from pools of individual mortgages, are usually targeted at experienced investors. Agency mortgage-backed securities backed by government-sponsored enterprises such as Fannie Mae or Freddie Mac offer protection against credit risk but involve other complexities. While individual investors can access them through certain vehicles, it's important to understand the additional research required to focus on higher yields associated with recent home loans at rates around 6% or 7%.
Source: YAHOO