Optimal payment of mortgages

This article provides a borrower's optimal strategies to terminate a mortgage with a fixed interest rate by paying the outstanding balance all at once. The problem is modelled as a free boundary problem for the appropriate analogue of the Black-Scholes pricing equation under the assumption of t...

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Veröffentlicht in:	European journal of applied mathematics 2007-06, Vol.18 (3), p.363-388
Hauptverfasser:	XIE, DEJUN, CHEN, XINFU, CHADAM, JOHN
Format:	Artikel
Sprache:	eng
Schlagworte:	Applied mathematics Mathematical analysis Mathematical problems Mortgages Optimization
Online-Zugang:	Volltext
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