econ423courseobjectives12 - Course Objectives Chapter 12...

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Course Objectives Chapter 12 Econ 423 - Financial Markets Lauren Heller, Summer 2009 Chapter 12: The Mortgage Markets Objectives By the end of this chapter, you should be able to: o Outline the history of the primary and secondary mortgage markets, and the role of economic fluctuations, government intervention, and risk in the development of these markets. o Describe the determinants of mortgage interest rates, especially with respect to current market rates, loan term, and discount points. o Compute the effective annual interest rate on mortgage loans with different quantities of discount points paid at origination. Be able to discuss a consumer's optimal choice with respect the decision to pay discount points. o Explain the variety of possibilities available with respect to mortgage loan terms, including down payments, interest rate changes, borrower qualifications, and private mortgage insurance. o
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This note was uploaded on 08/31/2009 for the course ECON 423 taught by Professor Vd during the Summer '08 term at UNC.

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