An Empirical Analysis of Residential Mortgage Refinancing Decision-Making.

Swati Virmani, Austin Murphy

Research output: Contribution to journalArticlepeer-review


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.
Original languageEnglish
Pages (from-to)129-138
Number of pages10
JournalJournal of Housing Research
Issue number2
Publication statusPublished - 2010
Externally publishedYes


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