Real Estate Finance applies financial economic theory to real
estate financial institutions and markets to explain how changes
in the economic or financial environment affect real estate
financial decision making. The course concentrates on residential
mortgages, commercial mortgages and mortgages on Wall Street.
First, basic real estate finance focuses on fixed and adjustable
rate mortgages with some insight on the refinancing decision.
Next commercial mortgages are introduced with emphasis on
underwriting, economics, and mortgage-backed securities. Lastly,
the course looks into real options and the relationship to land
value. The course integrates theory with practice with Excel
programming.

I. Background Material

     Introduction 
          Instructions on how to use the TI BA II Plus calculator 
          Instructions on how to logon to the computer topics 
     Present Value and Mortgage Cash Flow 
        1.Computer Topic 1-Cash Flow and Present Value 
        2.Computer Topic 2-Annuities 
        3.Computer Topic 3-Yield and IRR 

II. Mortgages

     Fixed Rate Mortgages, 
        1.Computer Topic 4-Fixed Rate Mortgages 
     Adjustable Rate Mortgages, 
        1.Computer Topic 5-Pricing Adjustable Rate Mortgages 

III. Creative Financing

     Creative Financing- 
        1.Computer Topic 6-Refinancing 
        2.Computer Topic 7-Junior Financing 
        3.Computer Topic 8-Builder Buy Downs and ZIMs 

IV. Mortgages on Wall Street

     Mortgages on Wall Street- 
        1.Computer Topic 9-Fixed Rate Mortgage Securities 
        2.Computer Topic 10-Synthetic Securities-IOs and POs 
        3.Computer Topic 11-Collateralized Mortgage
Obligations(CMOs) 

V. Commercial Mortgages

     Commercial Mortgages- 
        1.Computer Topic 12-Commercial Mortgage Analysis and
Underwriting 
        2.Computer Topic 13-Commercial Mortgage-Backed Securities 

Final: Exam is accumulative.