Pricing Shared Appreciation Mortgages
This paper develops a model for the valuation of shared appreciation mortgage (SAM) and examines the effect of reduction in interest rate on the mortgage duration and share of property appreciation lender charges. The recent rise in SAM availability, as a result of some secondary market financial su...
| Main Author: | |
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| Format: | Dissertation (University of Nottingham only) |
| Language: | English |
| Published: |
2006
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| Online Access: | https://eprints.nottingham.ac.uk/20781/ |
| _version_ | 1848792133371166720 |
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| author | Zhong, Yina |
| author_facet | Zhong, Yina |
| author_sort | Zhong, Yina |
| building | Nottingham Research Data Repository |
| collection | Online Access |
| description | This paper develops a model for the valuation of shared appreciation mortgage (SAM) and examines the effect of reduction in interest rate on the mortgage duration and share of property appreciation lender charges. The recent rise in SAM availability, as a result of some secondary market financial support and prerequisite standardization,
motivates a more careful consideration of the underlying SAM value. The primary difference between the SAM model and the model for general traditional mortgage is that SAM contains a call option feature. The lender's share of appreciation in SAM is essentially a call option written by the borrower to the lender, where the lender
exercises the option at the time of prepayment or at the end of the mortgage. |
| first_indexed | 2025-11-14T18:39:33Z |
| format | Dissertation (University of Nottingham only) |
| id | nottingham-20781 |
| institution | University of Nottingham Malaysia Campus |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T18:39:33Z |
| publishDate | 2006 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | nottingham-207812018-04-27T13:03:23Z https://eprints.nottingham.ac.uk/20781/ Pricing Shared Appreciation Mortgages Zhong, Yina This paper develops a model for the valuation of shared appreciation mortgage (SAM) and examines the effect of reduction in interest rate on the mortgage duration and share of property appreciation lender charges. The recent rise in SAM availability, as a result of some secondary market financial support and prerequisite standardization, motivates a more careful consideration of the underlying SAM value. The primary difference between the SAM model and the model for general traditional mortgage is that SAM contains a call option feature. The lender's share of appreciation in SAM is essentially a call option written by the borrower to the lender, where the lender exercises the option at the time of prepayment or at the end of the mortgage. 2006 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/20781/1/06MAlixyz24.pdf Zhong, Yina (2006) Pricing Shared Appreciation Mortgages. [Dissertation (University of Nottingham only)] (Unpublished) |
| spellingShingle | Zhong, Yina Pricing Shared Appreciation Mortgages |
| title | Pricing Shared Appreciation Mortgages |
| title_full | Pricing Shared Appreciation Mortgages |
| title_fullStr | Pricing Shared Appreciation Mortgages |
| title_full_unstemmed | Pricing Shared Appreciation Mortgages |
| title_short | Pricing Shared Appreciation Mortgages |
| title_sort | pricing shared appreciation mortgages |
| url | https://eprints.nottingham.ac.uk/20781/ |