Mortgage design in imperfect capital markets
Article Abstract:
Housing finance structures available within imperfect capital markets are analyzed, with particular attention paid to mortgage amortization schedules in order to identify the amortization rate most beneficial to the buyer. Optimal amortization schedules are developed for ideal mortgage repayment terms, and conditions under which balloon payment mortgages function best are described. Mathematical modeling and equations involved in the research consider such factors as: income and wealth of the home purchaser, variance within asset values, mortgage interest, expected return on assets, expected return on housing, price covariance factors, changes in mortgage limits, and risk aversion.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1986
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The nature of credit rationing in the United Kingdom mortgage market
Article Abstract:
An analysis of methods for estimating market demand for home purchase financing in Great Britain related to home purchases, given the credit rationing conditions within this market. The results indicate that market clearing may result from adjustment of non-price terms, but that it is also likely that adjustment of non-interest rate terms could cause the market to remain uncleared. Also discussed are the use of credit rationing to discriminate among mortgage borrowers, theories behind credit rationing, and suggestions for future research.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1986
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Does government levy a tax penalty on the use of indexed mortgages?
Article Abstract:
The US government imposes a tax penality on indexed mortgage contracts and the value of that penalty increases dramatically with the rate of inflation. The removal of that tax penalty would be a necessity for the use of real-based mortgage contracting during periods of unpredictable price levels.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1990
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