MORTGAGE-BACKED SECURITIES
Mortgages
Types
Mortgage Mathematics
Mortgage Risk
Example :
1 1
present value = C − N
R R (1 + R )
where C = the monthly payment
R = the monthly interest rate
N = the number of payments
So:
1 1
$100,000 = C − 360
0. 66667 0.66667(1 + 0.66667 )
⇒ The monthly payment will be $733.76
Mortgage Pool
Mortgage Pool
Mortgage Pool
Timing Timing
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Mortgages
Types
Mortgage Mathematics
Mortgage Risk