Fall/Winter 1981, Vol 6, No 2

Abstract: Federally chartered savings and loans and mutual savings banks can now make flexible mortgages with no limits on the change in payment, interest rate or maturity. To evaluate the impact of this increased flexibility on consumers, two mortgages (a fully variable rate mortgage and a Wachovia-type mortgage) are compared as if these had been available for the last five years. The payments, total interest paid and the internal rate of return for the flexible mortgages are compared to a fixed rate fully amortized loan.