Assessing the Costs and Benefits of Accelerated Payment Mortgages

  • July 22, 1990
  • • Written by: Wynn P. Betty Douglas Timmons

Spring/Summer 1990, Vol 15, No 1

Abstract: How should home buyers evaluate accelerated payment mortgages? While it is true that accelerated payment mortgages do enhance home equity buildup and lower total interest costs over the life of the loan, the financial advantages of these plans are by no means certain. This article provides a methodology for assisting home buyers in the assessment of the possible costs and benefits of accelerated payment mortgages.