Electronic Resource
Oxford, UK
:
Blackwell Publishing Ltd
Real estate economics
15 (1987), S. 0
ISSN:
1540-6229
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
This paper addresses the issue of why discount points exist in the mortgage market. In the process of resolving these questions, a number of insights into the mortgage market are achieved. An important principle is that changes in loan structure due to points, prepayments or other deviations in the typical mortgage have no impact on the competitive rate of return. Thus, the essential role of points is not to raise the effective rate of return nor are they the purchase price a risk-averter desires for an option to prepay. Instead it is taxes that play the critical role.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/1540-6229.00426
|
Location |
Call Number |
Expected |
Availability |
