"This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers … prevents the mortgage pools from becoming disproportionately composed of the riskiest borrowers over time. Mortgages with … prepayment penalties allow lenders to lower mortgage rates and extend credit to the least creditworthy, with the largest benefits …

This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers … prevents the mortgage pools from becoming disproportionately composed of the riskiest borrowers over time. Mortgages with … prepayment penalties allow lenders to lower mortgage rates and extend credit to the least creditworthy, with the largest benefits …

This paper explores the practice of mortgage refinancing in a dynamic competitive lending model with risky borrowers … prevents the mortgage pools from becoming disproportionately composed of the riskiest borrowers over time. Mortgages with … prepayment penalties allow lenders to lower mortgage rates and extend credit to the least creditworthy, with the largest benefits …

Households that fail to refinance their mortgage when interest rates decline can lose out on substantial savings. Based … on a large random sample of outstanding U.S. mortgages in December of 2010, we estimate that approximately 20% of … households for whom refinancing would be optimal and who appeared unconstrained to do so, had not taken advantage of the lower …

Households that fail to refinance their mortgage when interest rates decline can lose out on substantial savings. Based … on a large random sample of outstanding U.S. mortgages in December of 2010, we estimate that approximately 20% of … households for whom refinancing would be optimal and who appeared unconstrained to do so, had not taken advantage of the lower …

Households that fail to refinance their mortgage when interest rates decline can lose out on substantial savings. Based … on a large random sample of outstanding U.S. mortgages in December of 2010, we estimate that approximately 20% of … households for whom refinancing would be optimal and who appeared unconstrained to do so, had not taken advantage of the lower …

leverage, precautionary saving in liquid assets and illiquid home equity, debt repayment, mortgage refinancing, and default …We estimate a structural model of household liquidity management in the presence of long-term mortgages. Households …