Chapter-4-Fixed-Rate-Mortgage-Loans(内含中文笔记).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按揭贷款需求源自对房屋的需求 Demand supply of mortgage funds Housing Demand Factors: Number of households desiring housing Income Demographics (size, age, tastes, preference…)人口统计数据 Mortgage Funds Supply Factors Cost of attracting funds from savers 吸引资金的成本 Cost of managing and originating loans 管理组织成本 Risk of potential losses 潜在损失风险 Return and risk on alternative investment opportunities: stock, bonds, etc. 别的机会更好 Components of the Mortgage Interest Rate A one-year mortgage loan r = Real Rate of interest f = Inflation Rate p = Risk Premiums 抵押贷款利率=通胀利率+风险溢价+利率 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 5年后可以收回贷款 CAM vs. CPM Constant Amortization Mortgage (CAM) 等额本金还贷 loan amortization (principal amortization) remains the same 每期偿还的本金一样 monthly payment changes Constant Payment Mortgage (CPM) 等额本息还贷 loan amortization changes monthly payment remains the same 每期偿还的金额一样 mortgage loan constant 抵押贷款常数 monthly payment/ loan amount Mortgage Payment Patterns Example 4-1