Mortgage Prepayment Analysis: A Computerized Approach

  • July 3, 1989
  • • Written by: Robert O. Kirby Robert T. Nash

Spring/Summer 1989, Vol 14, No 1

Abstract: Mortgage prepayment provides an excellent potential investment. Not only does it possess unique advantages for the borrower, it also assist the lender in averting risk and increasing liquidity. This article describes the advantages of mortgage prepayment and develops a model, using a Lotus 1-2-3 computer program, for evaluating the prepayment alternative by the same techniques that investment advisers use to analyze other investments.