An Investigation of Adjustable-rate Mortgage Pricing Features

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    Abstract

    Investigates costs and risks associated with the choice of terms for adjustable rate mortgages. Impact of mortgage-rate changes on the size of payments for adjustable-rate mortgages; Examination of the choice of length of the fixed period before the occurrence of the first interest rate; Assessment of the choice of annual and lifetime caps for a standard one year adjustable rate mortgages.

    Original languageAmerican English
    JournalFinancial Services Review
    Volume12
    StatePublished - Jan 1 2002

    Keywords

    • ADJUSTABLE rate mortgages
    • INTEREST rates
    • MORTGAGE loans

    Disciplines

    • Business
    • Finance and Financial Management

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