CHAPTER 17 LECTURE - MIT OpenCourseWare
• Low payments possible with long amortization (e.g., $10286 in 30-yr CPM vs $10000 in interest-only). • If FRM, constant flat payments easy to budget and administer. • Large initial iLarge initial interest portion in pmts improves PV of interest nterest portion in pmts improves PV of interest tax shields (compared to CAM) for high tax ... ................
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