An Empirical Analysis of Residential Mortgage Refinancing Decision-Making
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
Citation : 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
Research Institute : Institute for Applied Economics and Social Value (IAESV)
Peer Reviewed : Yes