This article reports on the determinants of the ARM choice for commercial real estate projects. The theoretical literature suggests that commercial real estate projects are more likely to be financed with an adjustable-rate mortgage (ARM) if the project's income stream or value is expected to rise w
Variable rate loans and financed activities: The case of adjustable rate mortgages
โ Scribed by Michael J. Stutzer; William Roberds
- Book ID
- 116089152
- Publisher
- Elsevier Science
- Year
- 1988
- Tongue
- English
- Weight
- 576 KB
- Volume
- 24
- Category
- Article
- ISSN
- 0094-1190
No coin nor oath required. For personal study only.
๐ SIMILAR VOLUMES
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
This article analyzes mortgage terminations using a national individual loan data set for the 1986-1992 period. The standard option-choice-theoretic framework is supplemented with variables to proxy for non-option-related termination determinants. Separate multinominal logit models are estimated for