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Mortgages & Agencies Topic 10

Mortgages & Agencies Topic 10. Total Mortgage Market & Its Breakdown. Top Mortgage Originators. Breakdown of FRMs and ARMs. Example of an ARM Terms. Historical Variations in ARM base rate. Mortgage Yields and Cash Flow Calculations. Mortgage Yields and Cash Flow Calculations.

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Mortgages & Agencies Topic 10

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  1. Mortgages & Agencies Topic 10

  2. Total Mortgage Market & Its Breakdown

  3. Top Mortgage Originators

  4. Breakdown of FRMs and ARMs

  5. Example of an ARM Terms

  6. Historical Variations in ARM base rate

  7. Mortgage Yields and Cash Flow Calculations

  8. Mortgage Yields and Cash Flow Calculations

  9. Computing Mortgage Monthly Cash Flows

  10. Computing Mortgage Monthly Cash Flows

  11. Mortgage Yields and Cash Flow Calculations

  12. Useful Mortgage Formulas -- Cash Flow Calculations Source: Lakhbir Hayre, CITIGROUP G: Monthly coupon (6% annual implies G=0.06/12=0.0050). U: Discount factor: U=1/(1+G)=1/1.005=0.995025 N=Original term of mortgage loan in months (e.g. N=360). n=Age of loan in months. R=N-n=remaining loan term in months.

  13. Useful Mortgage Formulas -- Cash Flow Calculations No prepayments

  14. The role of Federal Agencies in Mortgage Market

  15. The role of Federal Agencies in Mortgage Market

  16. The role of Federal Agencies in Mortgage Market

  17. Agency’s Borrowing Costs in Capital Markets

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