An Evaluation of the Asset Integrated Mortgage

  • April 22, 1995
  • • Written by: G. Donald Jud Daniel T. Winkler

April 1995, Vol 20, No 1

Abstract: The Asset Integrated Mortgage (AIM) is a new hybrid mortgage that blends a home loan mortgage and an insurance annuity. Instead of a 20 percent down payment, a borrower puts down as little as 5 percent, with the difference invested in an insurance annuity for the duration of the mortgage. The article compares the cost of the AIM with a conventional mortgage, and solves for the required rate of return on the insurance annuity of the AIM that equates the cost of the two mortgages.