• David Laibson


Optimal Mortgage Refinancing: A Closed Form Solution. David Laibson, March 17, 2013, Paper. Households in the US hold $23 trillion in real estate assets. Almost all home buyers obtain mortgages and the total value of these mortgages is $10 trillion, exceeding the value of US government debt. Decisions about mortgage refinancing are among the most important decisions that households make. Borrowers refinance mortgages to change the size of their mortgage and/or to take advantage of lower borrowing rates. Many authors have calculated the optimal refinancing differential when the household is..." Link verified August 21, 2014