Optimal Mortgage Design

This article studies optimal mortgage design in a continuous-time setting with volatile and privately observable income, costly foreclosure, and a stochastic market interest rate. We show that the features of the optimal mortgage are consistent with an option adjustable-rate mortgage (option ARM). U...

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Veröffentlicht in:	The Review of financial studies 2010-08, Vol.23 (8), p.3098-3140
Hauptverfasser:	Piskorski, Tomasz, Tchistyi, Alexei
Format:	Artikel
Sprache:	eng
Schlagworte:	Adjustable rate mortgages Correlation Correlation analysis Credit Debt Expected utility Interest rates Lenders Lines of credit Loan payments Loans Market Mortgage loans Mortgages Nominal interest rates Risk Stochastic models Studies Utility rates
Online-Zugang:	Volltext
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