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A Note on the Valuation of Mortgage Loan Commitments: Incorporating the Commitment Cost in the Mortgage Rate.
- Source :
- Journal of Real Estate Research; Summer90, Vol. 5 Issue 2, p281, 4p
- Publication Year :
- 1990
-
Abstract
- Abstract. Kutner and Seifert [4] recently found that mortgage loan commitments have significant financial value. This note presents a procedure that may be used to incorporate this value in the nominal lending rate. The findings indicate that typical lending rates should be augmented by approximately 8 to 44 basis points in order to adequately capture this additional cost. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 08965803
- Volume :
- 5
- Issue :
- 2
- Database :
- Complementary Index
- Journal :
- Journal of Real Estate Research
- Publication Type :
- Academic Journal
- Accession number :
- 4477450