Course
The American Housing Finance System (63 videos)
1 Basic mortgage arithmetic
2 Lowering the initial payment
3 Housing as an investment
4 Mortgage process part 1
5 Basic mortgage underwriting
6 Mortgage process part 2
7 Risk management part 1
8 Risk management part 2
9 Mortgage process part 3
10 Introduction to mortgage analytics
11 Modeling the default option
12 Modeling interest-rate risk
13 Varieties of mortgage securities
14 Risk Management at Freddie Mac & Fannie Mae
15 Private-label securities
16 Painful historical episodes & policy responses
17 Policy Problems in Housing Finance

Teaser ARMs

Instructor: Arnold Kling
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Objective:  to understand the appeal of adjustable-rate mortgages with low initial rates.

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i am not sure i follow the bit about teaser periods and negative amortization. negative amortization means the balance is going up. in particular your total payment doesn't cover the interest owed. however in a teaser period, the interest you owe *is* the below market rate and your payment is calculated with this in mind. so your balances are monotonically decreasing (unless your rate is zero). am i missing something?

actually it is decreasing faster if the rate is zero. i didn't correct this sooner to see if someone else would

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