Undergraduate research: Mathematical modeling of mortgages

Youngna Choi, Steven Spero

Research output: Contribution to journalArticle

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 languageEnglish
Pages (from-to)698-711
Number of pages14
JournalPRIMUS
Volume20
Issue number8
DOIs
StatePublished - 1 Nov 2010

Keywords

  • ARM
  • Amortization
  • Credit default
  • FRM
  • Financial crisis
  • Mortgage
  • Net present value
  • Subprime

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