Buy custom Pricing And Valuation Analysis Of Fixed Rate Mortgages
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Business
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Number of pages / Number of words: |
10 / 2702 |
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There are no hybrid options available.
- In considering alternatives to the current mortgage portfolio, we use the prevalent market rate even though technically PFMC may get more or less than the market rate.
- All calculations are done in the accompanying spreadsheet titled âAnalytical Model Calculations - Team 12...
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Analytical Models
MODEL A: Fair Pricing of Mortgage
(Please refer to Analytical Model Calculations â Exhibit #1 for all calculations)
Premise: The initial situation holds true: Four balloon mortgages of $500,000 amortized over 25 years and term of 11 years. Pricing scheme was done a year ago and used a combination of 7% contract rate and 5 points...
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