Download or read book Adjustable and Fixed Rate Mortgage Termination Option Values and Local Market Conditions written by James Vanderhoff and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes the probabilities of prepayment or default for Fixed Rate Mortgages (FRMs) and Adjustable Rate Mortgages (ARMs). Using data from the period 1985-1992, the analysis indicates that the likelihood of prepayment of thirty year FRMs was determined primarily by house price appreciation and personal income growth and the likelihood of prepayment of fifteen year FRMs determined primarily by interest rate changes. ARMs were prepaid less frequently than FRMs, were less likely to be prepaid when interest rates declined and defaulted more often than FRMs. The analysis provides evidence that ARM holders are less mobile than FRM holders.
Download or read book The Probability of Fixed and Adjustable Rate Mortgage Termination written by Richard Phillips and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyzes mortgage terminations using a national individual loan data set for the 1986 to 1992 period. The standard option choice-theoretic framework is supplemented with variables to proxy for non-option related termination determinants. Separate multinomial logit models are estimated for three mortgage types: 30 year FRMs, 15 year FRMs, and 30 year ARMs. The results indicate substantial differences in the response of the mortgage types to variables included in the model. FRM15 prepayments are the most responsive to prepayment option values; FRM30 prepayments are less responsive to option values and are driven by local area housing market and economic conditions; ARM prepayment rates are higher but default rates are lower relative to the FRMs. A noteworthy finding is that teaser discounts reduce the likelihood of ARM defaults.
Download or read book Advances in Education and Management written by Mark Zhou and published by Springer Science & Business Media. This book was released on 2011-07-22 with total page 639 pages. Available in PDF, EPUB and Kindle. Book excerpt: This four-volume-set (CCIS 208, 209, 210, 211) constitutes the refereed proceedings of the International Symposium on Applied Economics, Business and Development, ISAEBD 2011, held in Dalian, China, in August 2011. The papers address issues related to Applied Economics, Business and Development and cover various research areas including Economics, Management, Education and its Applications.
Download or read book Consumer Mortgage Choice Between Fixed rate Mortgages and Adjustable rate Mortgages written by Hsiu-Wen Wu and published by . This book was released on 1992 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Federal Register written by and published by . This book was released on 2012-09 with total page 516 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Adjustable Rate Mortgage Pricing written by David Peter Rubinstein and published by . This book was released on 1990 with total page 730 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Option Theory and Fixed Rate Mortgages written by and published by . This book was released on 1986 with total page 130 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Federal Register written by and published by . This book was released on 1981-03-23 with total page 1212 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book A Dynamic Analysis of Fixed and Adjustable Rate Mortgage Terminations written by Charles A. Calhoun and published by . This book was released on 2002 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a side-by-side comparison of loan-level statistical models for fixed- and adjustable-rate mortgages. Multinomial logit models for quarterly conditional probabilities of default and prepayment are estimated. We find that the estimated impacts of embedded option values for prepayment and default are generally quite similar across both FRM and ARM loans, providing additional empirical support for the basic predictions of the options theory. We also find that differences in estimates of conditional probabilities of prepayment and default associated with mortgage age, origination period, original LTV, and relative loan size, indicate the continued significance of these other economic and demographic factors for empirical models of mortgage terminations.
Download or read book Journal of Economic Literature written by and published by . This book was released on 1997 with total page 1178 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Borrower s Choice of Fixed and Adjustable Rate Mortgages in the Presence of Nominal and Real Shocks written by Laacute;szloacute Szerb and published by . This book was released on 1998 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper concerns the conditions under which borrowers select fixed and adjustable rate mortgages. The novelty of the paper lies in its capability to analyze the effect of nominal and real shocks separately. The fixed rate mortgage (FRM) versus the adjustable rate mortgage (ARM) choice is determined by the expected real interest rate differential, initial wealth, income, expected real and nominal income risk exposure measured by different parameters the value of the house, the appreciation of the house and the influence of the variance of nominal and real shocks. Results differ according to whether or not borrowers are restricted by the loan-to-value constraint.
Download or read book Challenge Magazine written by and published by . This book was released on 2007 with total page 780 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Adjustable Rate Mortgages written by United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Financial Institutions Supervision, Regulation and Insurance and published by . This book was released on 1982 with total page 684 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Index of Economic Articles in Journals and Collective Volumes written by and published by . This book was released on 2003 with total page 1452 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Mortgage Default and Mortgage Valuation written by John Krainer and published by DIANE Publishing. This book was released on 2010-10 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: The authors develop an equilibrium valuation model that incorporates optimal default to show how mortgage yields and lender recovery rates on defaulted mortgages depend on initial loan-to-value (LTV) ratios. The analysis treats both the frictionless case and the case in which borrowers and lenders incur deadweight costs upon default. The model is calibrated using data on California mortgages. Given reasonable parameter values, the model does a surprisingly good job fitting the risk premium in the data for high LTV mortgages. Thus, from an ex ante perspective, the authors do not find strong evidence of systematic underpricing of default risk in the run-up to the housing market crisis. Charts and tables.
Download or read book Index of Economic Articles in Journals and Collective Volumes written by American Economic Association and published by . This book was released on 2003 with total page 1452 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Federal Role in Conventional Home Financing written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Housing and Urban Affairs and published by . This book was released on 1981 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt:
