Yang, T.L. Tyler; Maris, Brian A. - In: Real Estate Economics 21 (1993) 4, pp. 481-510
Information asymmetry exists between the lender and the borrower regarding the holding period of the mortgaged real estate; the lender does not know how long the borrower plans to own the house. This information asymmetry allows the cost of obtaining a mortgage to deviate from its value to the...