Single Month Mortality Calculator

✖Prepayment for a Month refers to the amount of principal on a loan or a pool of loans that is paid off ahead of the scheduled payments within a specific month.ⓘ Prepayment for a Month [PFM]			+10% -10%
✖Beginning Mortgage Balance for Month refers to the outstanding principal amount of a mortgage at the start of a specific month.ⓘ Beginning Mortgage Balance for Month [BMBM]			+10% -10%
✖Scheduled Principal Repayment for Month refers to the portion of a borrower's monthly mortgage payment that is allocated to reducing the outstanding principal balance of the loan.ⓘ Scheduled Principal Repayment for Month [SPR]			+10% -10%

✖Single Month Morality refers to the prepayment rate of a loan pool for a single month.ⓘ Single Month Mortality [SMM]

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Formula

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Single Month Mortality

Formula

`"SMM" = "PFM"/("BMBM"-"SPR")`

Example

`"1.294002"="6580"/("6030"-"945")`

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Single Month Mortality Solution

STEP 0: Pre-Calculation Summary

Formula Used

Single Month Morality = Prepayment for a Month/(Beginning Mortgage Balance for Month-Scheduled Principal Repayment for Month)
SMM = PFM/(BMBM-SPR)
This formula uses 4 Variables

Variables Used

Single Month Morality - Single Month Morality refers to the prepayment rate of a loan pool for a single month.
Prepayment for a Month - Prepayment for a Month refers to the amount of principal on a loan or a pool of loans that is paid off ahead of the scheduled payments within a specific month.
Beginning Mortgage Balance for Month - Beginning Mortgage Balance for Month refers to the outstanding principal amount of a mortgage at the start of a specific month.
Scheduled Principal Repayment for Month - Scheduled Principal Repayment for Month refers to the portion of a borrower's monthly mortgage payment that is allocated to reducing the outstanding principal balance of the loan.

STEP 1: Convert Input(s) to Base Unit

Prepayment for a Month: 6580 --> No Conversion Required
Beginning Mortgage Balance for Month: 6030 --> No Conversion Required
Scheduled Principal Repayment for Month: 945 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

SMM = PFM/(BMBM-SPR) --> 6580/(6030-945)

Evaluating ... ...

SMM = 1.29400196656834

STEP 3: Convert Result to Output's Unit

1.29400196656834 --> No Conversion Required

FINAL ANSWER

1.29400196656834 ≈ 1.294002 <-- Single Month Morality

(Calculation completed in 00.004 seconds)

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Rashtreeya Vidyalaya College of Engineering (RVCE), Bangalore

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< 18 Strategic Financial Management Calculators

Money Market Discount Rate

Go Money Market Discount Rate = (Year/Days of Maturity)*(Face Value of Money Market Instrument-Present Value of Money Market Instrument)/Face Value of Money Market Instrument

Effective Convexity

Go Effective Convexity = (Price of Bond When Yield is Decreased+Price of Bond When Yield is Increased-(2*Initial Price of Bond))/((Change in Curve)^2*Initial Price of Bond)

Add on Rate

Go Add on Rate = ((Year/Days)*((Amount Paid at Maturity Including Interest)-Present Value of Money Market Instrument)/(Amount Paid at Maturity Including Interest))

Change in Price of Full Bond

Go Percentage Change in Price of Bond = (-Annual Modified Duration*Change in Yield)+(1/2*Annual Convexity*(Change in Yield)^2)

Value of Right using New Shares

Go Value of Right = Number of New Shares*(Market Price-Issue Price of New Share)/Total Number of All Shares

Single Month Mortality

Go Single Month Morality = Prepayment for a Month/(Beginning Mortgage Balance for Month-Scheduled Principal Repayment for Month)

Value of Right

Go Value of Right per Share = (Stock Price-Right Subscription Price)/Number of Rights to Buy a Share

Cost of Equity

Go Cost of Equity = ((Dividend in Next Period/Current Share Price)+(Dividend Growth Rate*0.01))*100

Unlevered Beta

Go Unlevered Beta = Levered Beta/(1+((1-Tax Rate)*(Debt/Equity)))

Levered Beta

Go Levered Beta = Unlevered Beta*(1+((1-Tax Rate)*(Debt/Equity)))

Price Value of Basis Point

Go Price Value of Basis Point = (Price of Bond When Yield is Decreased-Price of Bond When Yield is Increased)/2

Price of Bond

Go Price of Bond = Face Value*(1+Implied Discount Rate)^Holding Period

Approximate Macaulay Duration

Go Approximate Macaulay Duration = Approximate Modified Duration*(1+Rate of Interest)

Conversion Parity Price

Go Conversion Parity Price = Value of Convertible Security/Conversion Ratio

Share Exchange Ratio

Go Exchange Ratio = Offer Price for Target's Share/Acquirer's Share Price

Earnings Yield

Go Earnings Yield = (Earnings per Share/Market Price per Share)*100

Dividend Rate

Go Dividend Rate = (Dividend per Share/Current Share Price)*100

Earnings Yield using PE Ratio

Go Earnings Yield = (1/Price-Earnings (PE) Ratio)*100

Single Month Mortality Formula

Single Month Morality = Prepayment for a Month/(Beginning Mortgage Balance for Month-Scheduled Principal Repayment for Month)
SMM = PFM/(BMBM-SPR)

What is Semi Annual Bond Yield?

Semi Annual Bond Yield is the fraction of the remaining mortgage loan principal that is prepaid in a single month. Prepayments can occur when homeowners pay off their mortgage ahead of schedule, often due to refinancing, selling the home, or making extra payments. Conditional Prepayment Rate is an annualized measure of the prepayment rate for a loan pool. For investors in mortgage-backed securities, a higher SMM indicates a higher rate of prepayment, which can affect the expected cash flows and yields from these securities. Lenders and servicers monitor SMM to understand prepayment behaviors and manage the servicing of loans. Single Month Mortality is a crucial measure in the mortgage finance industry, indicating the percentage of the remaining principal that is prepaid in a single month. Derived from the Conditional Prepayment Rate, it helps investors and lenders assess prepayment risk and manage their portfolios effectively. Understanding SMM is essential for accurately forecasting cash flows.

How to Calculate Single Month Mortality?

Single Month Mortality calculator uses Single Month Morality = Prepayment for a Month/(Beginning Mortgage Balance for Month-Scheduled Principal Repayment for Month) to calculate the Single Month Morality, Single Month Mortality measures the percentage of the remaining principal of the mortgage loans that are expected to be prepaid in a given month. Single Month Morality is denoted by SMM symbol.

How to calculate Single Month Mortality using this online calculator? To use this online calculator for Single Month Mortality, enter Prepayment for a Month (PFM), Beginning Mortgage Balance for Month (BMBM) & Scheduled Principal Repayment for Month (SPR) and hit the calculate button. Here is how the Single Month Mortality calculation can be explained with given input values -> 1.294002 = 6580/(6030-945).

FAQ

What is Single Month Mortality?

Single Month Mortality measures the percentage of the remaining principal of the mortgage loans that are expected to be prepaid in a given month and is represented as SMM = PFM/(BMBM-SPR) or Single Month Morality = Prepayment for a Month/(Beginning Mortgage Balance for Month-Scheduled Principal Repayment for Month). Prepayment for a Month refers to the amount of principal on a loan or a pool of loans that is paid off ahead of the scheduled payments within a specific month, Beginning Mortgage Balance for Month refers to the outstanding principal amount of a mortgage at the start of a specific month & Scheduled Principal Repayment for Month refers to the portion of a borrower's monthly mortgage payment that is allocated to reducing the outstanding principal balance of the loan.

How to calculate Single Month Mortality?

Single Month Mortality measures the percentage of the remaining principal of the mortgage loans that are expected to be prepaid in a given month is calculated using Single Month Morality = Prepayment for a Month/(Beginning Mortgage Balance for Month-Scheduled Principal Repayment for Month). To calculate Single Month Mortality, you need Prepayment for a Month (PFM), Beginning Mortgage Balance for Month (BMBM) & Scheduled Principal Repayment for Month (SPR). With our tool, you need to enter the respective value for Prepayment for a Month, Beginning Mortgage Balance for Month & Scheduled Principal Repayment for Month and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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