Advanced Search
Download This Paper Open PDF in Browser
Add Paper to My Library
Permalink
Using the URL or DOI link below will ensure access to this page indefinitely
Copy URL
Copy URL

Optimal Mortgage Refinancing: A Closed Form Solution

NBER Working Paper No. w13487

41 Pages Posted: 15 Oct 2007 Last revised: 13 Dec 2007

Sumit Agarwal

National University of Singapore

John C. Driscoll

Federal Reserve Board

David Laibson

Harvard University - Department of Economics; National Bureau of Economic Research (NBER)

Multiple version iconThere are 2 versions of this paper

Date Written: October 2007

Abstract

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 results closely match those reported by researchers who use numerical methods.

Suggested Citation

Agarwal, Sumit and Driscoll, John C. and Laibson, David, Optimal Mortgage Refinancing: A Closed Form Solution (October 2007). NBER Working Paper No. w13487. Available at SSRN: https://ssrn.com/abstract=1020913

Sumit Agarwal (Contact Author)

National University of Singapore ( email )

15 Kent Ridge Drive
Singapore, 117592
Singapore
8118 9025 (Phone)

HOME PAGE: http://www.ushakrisna.com

John C. Driscoll

Federal Reserve Board ( email )

20th and C Streets, NW
Washington, DC 20551
United States

HOME PAGE: http://www.federalreserve.gov/econresdata/john-c-driscoll.htm

David I. Laibson

Harvard University - Department of Economics ( email )

Littauer Center
Room M-14
Cambridge, MA 02138
United States
617-496-3402 (Phone)
617-495-8570 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Download This Paper Open PDF in Browser

Register to save articles to
your library

Register

Paper statistics

Downloads
40
Abstract Views
939
PlumX
47 References 6 Citations

Related eJournals

  • NBER Working Paper Series

    Follow

    NBER Working Paper Series

    Subscribe to this free journal for more curated articles on this topic

    FOLLOWERS
    10,948
    PAPERS
    25,516

  • Real Estate eJournal

    Follow

    Real Estate eJournal

    Subscribe to this fee journal for more curated articles on this topic

    FOLLOWERS
    675
    PAPERS
    8,120
    This Journal is curated by:
    Dennis R. Capozza at Ross School of Business, University of Michigan, William N. Goetzmann at Yale School of Management - International Center for Finance

Recommended Papers