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Consider the following pool of mortgages: 100 mortgages with initial balance of $247,904, interest rate 6.9%,...

Consider the following pool of mortgages:

  • 100 mortgages with initial balance of $247,904, interest rate 6.9%, issued for 30 years with monthly payments
  • 50 mortgages with initial balance of $386,587, interest rate 4.7%, issued for 15 years with monthly payments

What is the Weighted Average Maturity for this pool at origination? Express your answer in months rounded to 2 decimal points (e.g. if your answer is 5.6744 months, write 5.67).

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Answer #1

Weighted avergae maturity in months for this pool at origination will be 1.67 Months. Please refer attached image for calculation -

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