Patrick Power PRO
Economics PhD @ Boston University
Real Estate Finance
The economics of Housing & Homelessness
Mortgage
Mortgage Loan
Corporate Bond
Business Loans
Lender
Liquidity Risk
Interest Rate Risk
Prepayment Risk
Default Risk
Legislative Risk
i = r + p + f
Interest Rate
Real Interest Rate
Premium
Expected Inflation
Promissory Note
Mortgage
Obligation to repay the loan
Security for the debt
Personally liable
Lender
Borrower
\textrm{Total Amount} := \sum _{t=1}^n (1 + i)^tP
Let's say that you invested $P at the end of each year for n consecutive years. How much would you have?
Value of an Annuity
t=0
t=n
Banks
Historical Trend
Foreclosures
Long Term Trend Effect
Impact on Home Ownership
What's going on here?
Real Estate Finance
By Patrick Power
