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PRICING FAST‐PAY MORTGAGES: SOME SIMULATION RESULTS
Author(s) -
Shilling James D.,
Sirmans C. F.
Publication year - 1987
Publication title -
journal of financial research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.319
H-Index - 49
eISSN - 1475-6803
pISSN - 0270-2592
DOI - 10.1111/j.1475-6803.1987.tb00472.x
Subject(s) - equity (law) , secondary mortgage market , shared appreciation mortgage , collateralized mortgage obligation , mortgage underwriting , commercial mortgage backed security , economics , mortgage insurance , yield (engineering) , financial economics , actuarial science , business , political science , materials science , casualty insurance , metallurgy , law , insurance policy
The mortgage market has undergone rapid change in recent years, particularly in the introduction of alternative mortgage instruments. This paper explores one such instrument, the fast‐pay (early equity) mortgage. Specifically, in this paper the focus is on how this type of mortgage would be priced relative to the standard conventional mortgage using historical yield data.