房地产金融Chapter 4.pptVIP

Chapter 4   Fixed Rate Mortgage Loans Contents Determinants of Mortgage Interest Rate Development of Mortgage Loan Payment Patterns CPM vs. CAM Determining a Loan Balance Lender’s Yield Borrower’s Borrowing Costs Other Loan Patterns Objectives of this chapter Pricing and structuring FIR mortgage loans Rate of interest, fees, and other terms Techniques for determining the lender’s yield and the borrower’s cost Loan discounts, origination fees, prepayment penalties, prepaid interest 1. Determinants of Mortgage Interest Rates Sources of funds, economic growth, inflation, etc. Market rate of interest What will borrowers pay for the use of funds? What are lenders willing to accept for lending the funds? Derived demand: Demand for mortgage loans derived from demand for housing Demand supply of mortgage funds Housing Demand Factors: Number of households desiring housing Income Demographics (size, age, tastes, preference…) Mortgage Funds Supply Factors Cost of attracting funds from savers Cost of managing and originating loans Risk of potential losses Return and risk on alternative investment opportunities: stock, bonds, etc. Components of the Mortgage Interest Rate A one-year mortgage loan r = Real Rate of interest f = Inflation Rate p = Risk Premiums 2.Mortgage Payment Patterns Early loan payment (1930s-1940s) Large proportion of down payment requirement e.g. maximum loan: 50% of housing price Short term: maximum 5 yrs “Interest only”: with full loan balance due after 5 yrs, so another loan of lesser amount would be made CAM vs. CPM Constant Amortization Mortgage (CAM) 等额本金还贷 loan amortization (principal amortization) remains the same monthly payment changes Constant Payment Mortgage (CPM) 等额本息还贷 loan amortization changes monthly payment remains the same mortgage loan constant 抵押贷款常数 monthly payment/ loan amount Mortgage Payment Patterns Example 4-1 Calculating the Payment for a CPM等额本息还贷 $60,000 Mortgage Loan 12% Interest 30 Years Monthly Payments