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From: suhre@trwrba.UUCP (Maurice E. Suhre)
Newsgroups: net.invest
Subject: Re: mortgages
Message-ID: <1363@trwrba.UUCP>
Date: Thu, 11-Apr-85 12:15:58 EST
Article-I.D.: trwrba.1363
Posted: Thu Apr 11 12:15:58 1985
Date-Received: Sun, 14-Apr-85 02:32:40 EST
Organization: TRW EDS, Redondo Beach, CA
Lines: 9

The variable rate mortgage moves the interest rate fluctuation risk
from the lender to the borrower.  The lenders got burned very badly 
during the high inflation periods and they aren't about to get caught
again.  Since the risk of lending is reduced, the rate of return
(interest charged) is also reduced.  Seems simple enough.

Maurice

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