Abstract
This chapter examines the issue of financing, including the comparison of costs across lenders. Real estate loan payments frequently entail constant dollar amounts per period. Annuity formulas are applied directly in the computation of mortgage payments. Each mortgage payment is a blend of principal and interest. In a mortgage, the borrower is liquidating an investment. A sinking fund is the reverse of a mortgage. The objective is to build up a fund to achieve a certain sum at a given future date.
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© 1988 Kluwer Academic Publishers, Boston
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Chinloy, P. (1988). Interest Rates, Financing, and Mortgage Multipliers. In: Real Estate: Investment and Financial Strategy. Current Issues in Real Estate Finance and Economics, vol 1. Springer, Dordrecht. https://doi.org/10.1007/978-94-009-2663-9_4
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DOI: https://doi.org/10.1007/978-94-009-2663-9_4
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-7700-2
Online ISBN: 978-94-009-2663-9
eBook Packages: Springer Book Archive