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Teaser rates in conventional adjustable-rate mortgage (ARM) markets |
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| Authors: | Joel F Houston J Sa-Aadu James D Shilling |
| Institution: | (1) Department of Finance, Insurance and Real Estate, University of Florida, 32611 Gainesville, FL, USA;(2) Department of Finance, University of Iowa, 52242 Iowa City, IA, USA;(3) Department of Real Estate and Urban Land Economics, School of Business, University of Wisconsin, 53706 Madison, WI, USA |
| Abstract: | This article examines the pricing of teaser rates on adjustable-rate mortgages (ARMs). The theory indicates that lenders may offset teaser rates on ARMs through an increase in upfront fees or points, through looser life of loan rate caps, or through higher contract rates after the teaser has expired. Cross-sectional regression results fail to reject the null hypothesis that teaser ARMs are correctly priced. |
| Keywords: | Adjustable rate mortgages Teaser rates Mortgage pricing |
| 本文献已被 SpringerLink 等数据库收录！ | |