+7 495 989 9610, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»






Economic Analysis: Theory and Practice

Conditional optimization of mortgage loan parameters

Vol. 20, Iss. 3, MARCH 2021

Received: 8 October 2020

Received in revised form: 28 October 2020

Accepted: 15 November 2020

Available online: 30 March 2021


JEL Classification: R15, R31

Pages: 577–588


Aleksei Yu. CHUDNOVETS Siberian Federal University (SibFU), Krasnoyarsk, Russian Federation


Sodnom B. BAINOV National Research University – Higher School of Economics (NRU – HSE), Moscow, Russian Federation


Subject. In the article, we calculate the period of a borrowing, in which the interest burden and monthly payments are minimal.
Objectives. The aim is to create an algorithm to optimize the term of the mortgage loan, taking into account the amount of debt and interest rate of the loan.
Methods. The study employs methods to analyze the formula of annuity payments of a mortgage loan, and to model the final optimization algorithm.
Results. We developed an algorithm, to determine the optimal term of the loan, using the certain loan amount and interest rate. The study considers the case for banks, operating in Krasnoyarsk.
Conclusions. The paper considers two parameters of a mortgage loan, i.e. the interest burden and the monthly payment, which is calculated, according to the annuity formula. Both parameters depend on the loan amount, the interest rate, and the period of the loan. However, the interest rate is set by the bank, so the only parameter that the borrower can change is the period of payment. By changing the term to maturity, it is possible to have a loan with minimum payments and interest burden. For the purpose of optimization, we consider both parameters simultaneously. Taking into account their versatile nature, we consider the optimal time, when payments and interest burden are minimized. The paper also reviews the case of optimization of credit parameters for construction enterprises of the Krasnoyarsk Krai, in various banks.

Keywords: mortgage loan, interest burden, monthly payment, loan parameter, optimization


  1. Khe O.V. [The methods of mortgage loan repayment modeling]. Vestnik Rossiiskogo universiteta druzhby narodov. Ser.: Ekonomika = Bulletin of Peoples' Friendship University of Russia. Series Economics, 2009, no. 1, pp. 60–69. URL: Link (In Russ.)
  2. Khe O.V. [Restructuring residential mortgages]. Den'gi i kredit = Russian Journal of Money and Finance (Money and Credit), 2009, no. 5, pp. 67–70. URL: Link (In Russ.)
  3. Korosteleva T.S. [To a question of influence of a way of repayment of a debt on availability of a mortgage loan]. Finansovaya analitika: problemy i resheniya = Financial Analytics: Science and Experience, 2014, vol. 7, iss. 6, pp. 17–27. URL: Link (In Russ.)
  4. Khvan A.A., Kuz'menko M.D. [Perspective ways of mortgage lending development for young families]. Economics, 2015, no. 3, pp. 10–14. URL: Link (In Russ.)
  5. Shenshin V.M., Shnyrov A.E. [The legislation on the savings and mortgage system requires perfection]. Pravo v Vooruzhennykh Silakh – Voenno-pravovoe obozrenie = Law in the Armed Forces – Military-Legal Review, 2017, no. 1, pp. 27–33. URL: Link (In Russ.)

View all articles of issue


ISSN 2311-8725 (Online)
ISSN 2073-039X (Print)

Journal current issue

Vol. 20, Iss. 3
March 2021