This paper defines a
conventional mortgage as a
long term loan which meets the guidelines put forth by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corp. This paper details the three types of conventional mortgage options currently available. The first is the fixed rate conventional mortgage, the second is an adjustable rate conventional mortgage while the third is a balloon mortgage. This paper examines the characteristics of the three mortgage options. This paper focuses on the
debt problems of a particular
hospital while attempting to find the most cost effective mortgage option to reduce said debt. This paper also analyzes the risks involved in securing a conventional mortgage by delving into the various issues surrounding the workings of state and local hospitals. The writer contends and explains why hospitals are generally insecure financial institutions dependent on state budgeting and financing which can and usually are influenced by issues such as changes in the governing party or changes in the state's priorities.