average life


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Average life

Also referred to as the weighted-average life (WAL). The average number of years that each dollar of unpaid principal due on the mortgage remains outstanding. Average life is computed as the weighted-average time to the receipt of all future cash flows, using as the weights the dollar amounts of the principal paydowns.

Weighted Average Life

The amount of time for the principal on a loan or a mortgage to be paid off. The length of the weighted average life depends on the amount of principal paydowns and how often they are made. Once the WAL is calculated, one can determine how long it will take to pay off half of the remaining principal.

average life

See half-life.
References in periodicals archive ?
Despite an increase by half a year in the period 2003-2013, the average life expectancy in Bulgaria remains one of lowest in the European Union, a <a href="http://www.
The amended risk pricing mortality table includes the rise in average life expectancy of Indians.
In an annual report, the Ministry of Health, Labor and Welfare said that the average life span for Japanese women stood at 86.
While average life expectancy appears to be on the rise, using average life expectancies for planning purposes creates a potentially large problem: only one half of the lives used to calculate the average are deceased by the time the sample population actually reaches average life expectancy age.
Such efforts drove up Taiwan's average life insurance coverage to NT$989,700 in 2007, which declined to NT$670,900 and NT$678,500 in 2008 and 2009, respectively.
The average life restriction may limit a corporate's ability to invest in ALM friendly bonds even though in the expanded authorities section of the regs there are a list of foreign investments that would be permissible.
Litetronics: Neolite (10, 13, 15, 20 and 23 watts) 1 mg of mercury, 10,000 hour average life
Nagano and Okinawa prefectures continue to hold the title of longest average life spans for Japanese males and females, respectively, according to the ninth governmental quinquennial survey for the year 2005 released Monday.
Just Retirement offers its enhanced annuities to smokers, diabetics and others who are statistically more likely to die before reaching the average life expectancy, providing them with higher monthly income payments than they would get from a conventional life company which takes no account of their health or lifestyle.
Average life expectancy for men in well heeled West Dunbartonshire has risen to 78 years.
Despite hardships, Cubans have an average life expectancy roughly similar to that of the United States, reports AP (April 22, 2007).
Most immediate annuities use average life expectancies.

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