Scheduled monthly mortgage payment

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Calculate the following items for a newly issued, $400 million outstanding balance mortgage pool that is comprised of 30-year mortgages. The pass-through rate is 7.5% and the WAC is 8.125%. Prepayment speed is 100 PSA.

a. Find the SMM for Month 1:

b. What is the scheduled monthly mortgage payment for Month 1 paid by homeowners? (hint: use your calculator's TVM buttons)

c. What is the interest payment to the MBS pass-through holders (overall) for Month 1?

d. What is the estimated principal prepayment for Month 1?

Reference no: EM132059153

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