In recent years, commercial banks and savings and loan associations in South Florida have consistently offered initial adjustment period "teasers," or subsidies, on their adjustable rate mortgage loans (ARMs). This study adopts the size of the initial subsidy as a proxy for a lender's willingness to
The pricing of adjustable rate mortgage contracts
โ Scribed by J. Sa-Aadu; C. F. Sirmans
- Publisher
- Springer US
- Year
- 1989
- Tongue
- English
- Weight
- 786 KB
- Volume
- 2
- Category
- Article
- ISSN
- 0895-5638
No coin nor oath required. For personal study only.
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This article is based on the first chapter of the author's doctoral dissertation at the University of California at Berkeley. Thanks are due to the dissertation committee members: Gerard Gennotte, Hayne Leland, Pravin Varaiya, and especially, David Modest. Funding from the Norwegian Council for Rese
The authors thank two anonymous referees and the editor for their helpful comments and suggestions. The views expressed are solely the authors and do not reflect those of Freddie Mac or the Commodity Futures Trading Commission. An earlier version of this article was presented at the 1992 Financial M