Munich Personal RePEc Archive

Una nota sobre la relevancia del sistema de amortización en el mercado hipotecario español entre 1998 y 2008

Fuentes Castro, Daniel (2010): Una nota sobre la relevancia del sistema de amortización en el mercado hipotecario español entre 1998 y 2008. Published in: Boletín Económico de Información Comercial Española No. 2984 : pp. 17-28.

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Abstract

No one can ignore the importance of financial innovation in mortgage markets. A relevant issue is the choice of the amortization system. This article shows how the French amortization system has reduced the price of loans in the short term whereas price of loans has become more expensive in the long run (more profitable for banks). With a system of constant amortization, home buyers for residential purposes would have stood for a significantly lower financial cost. In addition, the fee structure for the constant depreciation system would have had the effect to contain to some extent the entry into the mortgage market, helping to curb speculation and preventing the grant of a portion of subprime mortgages.

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