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mbsnoprepay

End-of-month mortgage cash flows and balances without prepayment

Description

example

[Balance,Interest,Payment,Principal] = mbsnoprepay(OriginalBalance,GrossRate,Term) computes end-of-month mortgage balance, interest payments, principal payments, and cash flow payments with zero prepayment rate.

mbsnoprepay returns amortizing cash flows and balances over a specified term with no prepayment. When the lengths of pass-throughs are not the same, MATLAB® software pads the shorter ones with NaN.

Examples

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Given mortgage pools with the following characteristics, compute an amortization schedule.

OriginalBalance = 400000000;
CouponRate = 0.08125;
Term = [357; 355]; % Three- and five-month old mortgage pools.

[Balance, Interest, Payment, Principal] = mbsnoprepay(OriginalBalance, CouponRate, Term)
Balance = 357×2
108 ×

    3.9973    3.9973
    3.9946    3.9946
    3.9919    3.9918
    3.9892    3.9890
    3.9864    3.9862
    3.9837    3.9834
    3.9809    3.9806
    3.9781    3.9778
    3.9753    3.9749
    3.9724    3.9720
      ⋮

Interest = 357×2
106 ×

    2.7083    2.7083
    2.7065    2.7065
    2.7047    2.7046
    2.7029    2.7028
    2.7010    2.7009
    2.6992    2.6990
    2.6973    2.6971
    2.6954    2.6952
    2.6935    2.6933
    2.6916    2.6913
      ⋮

Payment = 357×2
106 ×

    2.9759    2.9799
    2.9759    2.9799
    2.9759    2.9799
    2.9759    2.9799
    2.9759    2.9799
    2.9759    2.9799
    2.9759    2.9799
    2.9759    2.9799
    2.9759    2.9799
    2.9759    2.9799
      ⋮

Principal = 357×2
106 ×

    0.2675    0.2715
    0.2693    0.2734
    0.2712    0.2752
    0.2730    0.2771
    0.2749    0.2790
    0.2767    0.2809
    0.2786    0.2828
    0.2805    0.2847
    0.2824    0.2866
    0.2843    0.2885
      ⋮

Input Arguments

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Original face value in dollars, specified as a table or an NUMOBS-by-1 matrix.

Data Types: double

Gross coupon rate (including fees), specified as an NUMOBS-by-1 vector of decimal values.

Data Types: double

Term of the mortgage in months, specified as an NUMOBS-by-1 vector.

Data Types: double

Output Arguments

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End-of-month balances over the life of the pass-through, returned as a Term-by-1 vector.

End-of-month interest payments over the life of the pass-through, returned as a Term-by-1 vector.

End-of-month payments over the life of the pass-through, returned as a Term-by-1 vector.

All scheduled end-of-month principal payments over the life of the pass-through, returned as a Term-by-1 vector.

Introduced before R2006a