Describe how the pattern of actual cash flows from mortgages with prepayment options differs from scheduled payments.
Question:
Describe how the pattern of actual cash flows from mortgages with prepayment options differs from scheduled payments. How would a drop in benchmark interest rates early in the life of such a cohort of mortgages affect this pattern? A rise in benchmark rates?
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Mortgages with prepayment options allow the borrower to pay more than the minimum required monthly p...View the full answer
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Related Book For 
Financial Markets Banking And Monetary Policy
ISBN: 9781118872239
1st Edition
Authors: Thomas D. Simpson
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