Are you looking to change the rate more than 6 times during the life of the loan or less than six times? For 6 times or less just make sure that cell G9 (Total Months) equals 120. See attachment. Let me know if that works for you.

Don ]]>

The email I sent you came back “not valid”

]]>The payment changes because each month that there are prepayments, loans are leaving the pool of mortgages and a new payment has to be calculated based upon the remaining loan balance.

Don

]]>In your Calculate CPR Given Prepayments sheet, why does the Payment amount change every month? Shouldn’t it be fixed? ]]>

The links I referenced did not show up in my reply. Try searching my site for the subjects below:

Market Value Functions for Servicing (MSR), Interest (IO), & Principal (PO)

MBS Math Formula. Servicing, CPR, Payment Delay, Default Rate & Loss Severity

Math for amortization rows with CPR, Servicing, CDR, & Loss Severity

MSR (Mortgage Servicing Rights) VBA Function

Valuing Servicing Matrix

Valuing Servicing With CPR

I don’t know of any classes. It’s something you pick up by working in the MBS markets. It’s an easy concept, however. It’s the present value of the servicing cash flow of a mortgage pool. I listed a few of my post that reference serving specifically. For examples, download the attached Excel spreadsheets.

Don

]]>If I understand your question, most of my amortization schedules can be from the standpoint of the owner of an MBS, so the guarantor will advance both delinquencies and servicing. I you are using a schedule that has CRD and Loss Severity, just ignore the CDR and Loss Severity by entering a zero for both.

I will send you an example with zeros for CDR and Loss Severity.

Don

]]>Thank you for your comment. If you use the search box, I think you will find all of the questions you have. I will send you a spreadsheet that shows how to handle all the payment periods you will need.

Don