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.
| Original language | English |
|---|---|
| Pages (from-to) | 129-138 |
| Number of pages | 10 |
| Journal | Journal of Housing Research |
| Volume | 19 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2010 |
| Externally published | Yes |
