Mortgage duration

Mortgage duration,

Definition of Mortgage duration:

  1. The number of years that pass until the investor receives the initial present value from a security backed by a mortgage, such as a home or a business. The longer the duration of the mortgage, the more the secured asset declines in value as interest rates rise, and, conversely, the more the value of the asset rises as interest rates fall.

Meaning of Mortgage duration & Mortgage duration Definition