Abstract
References
- Baek, Chung and Bilbeisi, Khamis, (2011), ”Should Home Buyers Choose a Short- or Long-Term Mortgage?”, The CPA Journal, 81(6), 56-61.
- Barney, Dwayne L. and White, Harry (1986), “The Optimal Mortgage Payment Path Under Price
- Uncertainty” Journal of the American Real Estate & Urban Economics Association 14(3), 4064
- Basciano, Peter M., Grayson, James M., and Walton, James. (2006), “Is a 30-Year Mortgage
- Preferable to a 15-year Mortgage?” Journal of Financial Counseling and Planning 17(1), 14-21. Coulibaly, Brahima and Li, Geng (2006), “Do Homeowners Increase Consumption after the Last
- Mortgage Payment? An Alternative Test of the Permanent Income Hypothesis”, The review of Economics and Statistics 88(1), 10-19. Deritis, Christian, Kuo, Chionglong, and Liang, Yongping (2010), “Payment Shock and Mortgage Performance” Journal of Housing Economics 19(4), 295-314.
- Dhillon, Upinder S., Shilling, James D., and Sirmans, Clemon F., (1990), “The Mortgage Maturity Decision: The Choice between 15-year and 30-year FRMs.” Southern Economic Journal 56(4), 1103-1116.
- Gallay, Ralph (2005), “Mortgage Decision…Lower Payment or Faster Payoff?” Journal of
- American Academy of Business 7(1), 208-212. Goff, Delbert C., and Cox, Don R., (1998), “15-Year Versus 30-Year Mortgage: Which is the Better Option?” Journal of Financial Planning 11(2), 88-95.
- Kellison, Stephen G. (1999). The Theory of Interest, Boston, Massachusetts: IRWIN.
- Kistner, William G., (1998), “Home Mortgage Loan Term Options.” Healthcare Financial Management 52(10), 86-88.
- MacDonald, Don N. and Winson-Geidman, Kimberly (2012), “Residential Mortgage Selection, Inflation Uncertainty, and Real Payment Tilt” Journal of Real Estate Research 34(1), 51-71.
- Mortgage-x.com (2012). http://mortgage-x.com/trends.htm.
- Pindyck, Robert S. and Rubinfeld, Daniel L. (1998). Econometric Models and Economic Forecasts, 4 th edition, McGraw-Hill.
- Stansell, Stanley R. and Millar, James A. (1976), “An Empirical Study of Mortgage Payment to Income Ratios in a Variable Rate Mortgage Program” Journal of Finance 31(2), 415-425.
- Tomlinson, Joseph A., (2002), “Advising Investment Clients about Mortgage Debt.” Journal of
- Financial Planning 15(6), 100-108.
Abstract
There are many tools to calculate the monthly mortgage payment. If, however, any of these tools is not immediately available, it may not be easy to calculate the monthly mortgage payment. We propose three approximate rules for two popular 15- and 30-year mortgage terms. These rules work very well for historical mortgage interest rates that range from 4% to 15%. Not only financial professionals but also academicians can use them very easily in any informal situation without regard to availability of specific tools.
References
- Baek, Chung and Bilbeisi, Khamis, (2011), ”Should Home Buyers Choose a Short- or Long-Term Mortgage?”, The CPA Journal, 81(6), 56-61.
- Barney, Dwayne L. and White, Harry (1986), “The Optimal Mortgage Payment Path Under Price
- Uncertainty” Journal of the American Real Estate & Urban Economics Association 14(3), 4064
- Basciano, Peter M., Grayson, James M., and Walton, James. (2006), “Is a 30-Year Mortgage
- Preferable to a 15-year Mortgage?” Journal of Financial Counseling and Planning 17(1), 14-21. Coulibaly, Brahima and Li, Geng (2006), “Do Homeowners Increase Consumption after the Last
- Mortgage Payment? An Alternative Test of the Permanent Income Hypothesis”, The review of Economics and Statistics 88(1), 10-19. Deritis, Christian, Kuo, Chionglong, and Liang, Yongping (2010), “Payment Shock and Mortgage Performance” Journal of Housing Economics 19(4), 295-314.
- Dhillon, Upinder S., Shilling, James D., and Sirmans, Clemon F., (1990), “The Mortgage Maturity Decision: The Choice between 15-year and 30-year FRMs.” Southern Economic Journal 56(4), 1103-1116.
- Gallay, Ralph (2005), “Mortgage Decision…Lower Payment or Faster Payoff?” Journal of
- American Academy of Business 7(1), 208-212. Goff, Delbert C., and Cox, Don R., (1998), “15-Year Versus 30-Year Mortgage: Which is the Better Option?” Journal of Financial Planning 11(2), 88-95.
- Kellison, Stephen G. (1999). The Theory of Interest, Boston, Massachusetts: IRWIN.
- Kistner, William G., (1998), “Home Mortgage Loan Term Options.” Healthcare Financial Management 52(10), 86-88.
- MacDonald, Don N. and Winson-Geidman, Kimberly (2012), “Residential Mortgage Selection, Inflation Uncertainty, and Real Payment Tilt” Journal of Real Estate Research 34(1), 51-71.
- Mortgage-x.com (2012). http://mortgage-x.com/trends.htm.
- Pindyck, Robert S. and Rubinfeld, Daniel L. (1998). Econometric Models and Economic Forecasts, 4 th edition, McGraw-Hill.
- Stansell, Stanley R. and Millar, James A. (1976), “An Empirical Study of Mortgage Payment to Income Ratios in a Variable Rate Mortgage Program” Journal of Finance 31(2), 415-425.
- Tomlinson, Joseph A., (2002), “Advising Investment Clients about Mortgage Debt.” Journal of
- Financial Planning 15(6), 100-108.
Details
| Journal Section | Articles |
|---|---|
| Authors | |
| Publication Date | March 1, 2013 |
| Published in Issue | Year 2013 Volume: 2 Issue: 1 |
Journal of Business, Economics and Finance (JBEF) is a scientific, academic, double blind peer-reviewed, quarterly and open-access journal. The publication language is English. The journal publishes four issues a year. The issuing months are March, June, September and December. The journal aims to provide a research source for all practitioners, policy makers and researchers working in the areas of business, economics and finance. The Editor of JBEF invites all manuscripts that that cover theoretical and/or applied researches on topics related to the interest areas of the Journal. JBEF charges no submission or publication fee.
Ethics
Policy - JBEF applies the standards of
Committee on Publication Ethics (COPE). JBEF is committed to the academic
community ensuring ethics and quality of manuscripts in publications.
Plagiarism is strictly forbidden and the manuscripts found to be plagiarized
will not be accepted or if published will be removed from the publication. Authors
must certify that their manuscripts are their original work. Plagiarism,
duplicate, data fabrication and redundant publications are forbidden. The
manuscripts are subject to plagiarism check by iThenticate or similar. All manuscript submissions must provide a similarity report (up to 15% excluding quotes, bibliography, abstract, method).
Open Access - All research articles published in PressAcademia Journals are fully open access; immediately freely available to read, download and share. Articles are published under the terms of a Creative Commons license which permits use, distribution and reproduction in any medium, provided the original work is properly cited. Open access is a property of individual works, not necessarily journals or publishers. Community standards, rather than copyright law, will continue to provide the mechanism for enforcement of proper attribution and responsible use of the published work, as they do now.