AI1144 Fundamentals of Residential Real Estate Finance 7.5 credits

Real estate investments, the financial system, financial intermediaries, credit market instruments, short- and long-term interest rates, financial leverage, present value mathematics, mortgage markets, loans with fixed and variable rates, loan amortization schedules, interest rate margins, yield curves, financial analysis of debt-financed property investments, banking, capitalization rates, credit risk, interest rate risks, financial stability and financial regulations, financial crisis.

After passing the course, the student should be able to:

• describe basic concepts and situations in residential real estate finance,
• solve problems that arises in residential real estate finance.

Knowledge in economics 7,5hp corresponding to the content in course AI1128 Economics of the Built Environment 7,5hp

and

Knowledge in mathematics 3,0 hp corresponding to completed part INL1 (Assignment 3,0hp) in course AI1178 Applied Mathematics and Statistics for Economists.

If the course is discontinued, students may request to be examined during the following two academic years.

• INL1 - Assignment, 3.5 credits, grading scale: P, F
• TEN1 - Examination, 4.0 credits, grading scale: A, B, C, D, E, FX, F

Based on recommendation from KTH’s coordinator for disabilities, the examiner will decide how to adapt an examination for students with documented disability.

The examiner may apply another examination format when re-examining individual students.

Coursework 3,5 credits (INL1)

Written exam 4 credits (TEN1)

Herman Donner

• All members of a group are responsible for the group's work.
• In any assessment, every student shall honestly disclose any help received and sources used.
• In an oral assessment, every student shall be able to present and answer questions about the entire assignment and solution.