An Empirical Analysis of Residential Mortgage Refinancing Decision-Making.

Virmani, Swati and Murphy, Austin (2010) An Empirical Analysis of Residential Mortgage Refinancing Decision-Making. Journal of Housing Research, 19 (2). pp. 129-138. ISSN 1052-7001

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Abstract

This research empirically investigates the relative optimality of several different methods of making refinancing decisions on residential mortgages. The results indicate that a simple rule of refinancing whenever the mortgage rate has dropped 1% was approximately as effective as application of an option pricing model in minimizing the cost of financing over the 1980–2007 interval

Information

URI:

https://eprints.hud.ac.uk/id/eprint/28452

Title:

An Empirical Analysis of Residential Mortgage Refinancing Decision-Making.

Creators:

Virmani, Swati and Murphy, Austin

Official URL:

http://aresjournals.org/doi/abs/10.5555/jhor.19.2....

Date:

1 June 2010

Subjects: