This paper studies how the impact of monetary policy depends on the distribution of savings from refinancing mortgages … savings from refinancing. We construct a quantitative dynamic lifecycle model that accounts for our findings and use it to … study how the response of consumption to a change in mortgage rates depends on the distribution of savings from refinancing …

literature on the role of refinancing in policy implementation. After briefly reviewing mortgage market institutions in the U ….S. and documenting refinance activity over time, we summarize the links between refinancing and consumption, and describe the … frictions impeding the refinancing channel. The paper draws heavily on research emerging from the experience of the financial …

, and near-frictionless refinancing opportunities---led to vastly increased systemic risk in the financial system … decrease leverage during bad times. If refinancing-facilitated homeowner-equity extraction is sufficiently widespread---as it …

We derive the first closed-form optimal mortgage refinancing rule. The expression is derived by using the Lambert …-W function to solve a tractable class of mortgage refinancing problems. We calibrate our solution and show that our quantitative …

We study the optimal recursive refinancing problem where a borrower minimizes his lifetime mortgage costs by repeatedly … refinancing when rates drop sufficiently. Key factors affecting the optimal decision are the cost of refinancing and the … by much more than the cost of refinancing. Applying the recursive model to an extensive sample of mortgage …

reduced recent refinancing in states with depressed property markets. We also point to the many ways in which the reduction in … refinancing may have inflicted additional damage in these already recession-hit states. Finally, we show that relatively minor …

Treasuries) during QE1 resulted in an additional $600 billion of refinancing, substantially reducing interest payments for … refinancing households, leading to a boom in equity extraction, and increasing consumption by an additional $76 billion. This de … simulations estimate that relaxing GSE eligibility requirements would have significantly increased refinancing activity in …

Using proprietary loan-level data, we examine the ability of the government to impact mortgage refinancing activity and … spur consumption by focusing on the Home Affordable Refinancing Program (HARP). The policy relaxed housing equity …. Difference-in-difference tests based on program eligibility criteria reveal a significant increase in refinancing activity by …