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Mortgage equity technique? Akerson/ Ellwood formula
Does anyone use this formula when analyzing a potential investment?
I'm looking at different methods of analysis but I'm having a problem at one part.
Here's an excerpt: The percentage of loan paid off in the holding period (P) can be determined by dividing the amortization rate of the 8-percent, 25-year full-term loan by the amortization rate of the 8-percent, 10-year holding-period loan. The percentage of loan paid off in the holding period is thus equal to 19.24 percent.
What variable/s do I need to look at to determine the percentage of the loan paid off? It would be much appreciated