Abstract
In this article, we study financing in the real estate market and show how various types of mortgages can be modeled and analyzed. With only an introductory level of interest theory, finance, and calculus, we model and analyze three types of popular mortgages with real life examples that explain the background and inevitable outcome of the current financial crisis.
| Original language | English |
|---|---|
| Pages (from-to) | 698-711 |
| Number of pages | 14 |
| Journal | PRIMUS |
| Volume | 20 |
| Issue number | 8 |
| DOIs | |
| State | Published - 1 Nov 2010 |
Keywords
- ARM
- Amortization
- Credit default
- FRM
- Financial crisis
- Mortgage
- Net present value
- Subprime