On a 30-year amortizing loan, paying equal amounts monthly, one has the following WALs, for the given annual interest rates ( and corresponding monthly payments per $ 100, 000 principal balance, calculated via an amortization calculator and the formulas below relating amortized payments, total interest, and WAL ):
22.
As a result, many intermediaries failed, particularly S & Ls which had been operating their own Philadelphia Plans issuing both the balloon and amortizing mortgages the latter under a share accumulation loan plan whereby borrowers were required to buy shares in the S & L each period until their holdings were at par with the amortizing loan principal at which point the debt was canceled.
