Kutner, George W.; Seifert, James A. - In: Journal of Real Estate Research 5 (1990) 2, pp. 281-284
Kutner and Seifert recently found that mortgage loan commitments have significant financial value. This note presents a procedure that may be used to incorporate this value in the nominal lending rate. The findings indicate that typical lending rates should be augmented by approximately 8 to 44...