Mortgage Choice - The Danish Case

Mikkel Svenstrup ()
Additional contact information
Mikkel Svenstrup: Department of Finance, Aarhus School of Business, Postal: Fuglesangs Allé 4, 8210 Aarhus V, Denmark

No 02-22, Finance Working Papers from University of Aarhus, Aarhus School of Business, Department of Business Studies

Abstract: In this paper we analyze the mortgage choice faced by Danish borrowers.

Based on an analysis of the most popular Danish mortgage products,

we argue that Adjustable-Rate Mortgages (ARM) with life time caps will

combine the most attractive features from straight ARMs and callable

Fixed-Rate Mortgages (FRM). Furthermore, we find the delivery option

embedded in Danish mortgages to be an important feature, which protects

households from the risk of insolvency by facilitating a closer match

between assets and liabilities in the household portfolio.

Keywords: Mortgage; Choice; Valuation; Delivery Option; Prepayment (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ure
Date: Written 2002-05-09
View list of references

Downloads: (external link)
http://www.hha.dk/~MSV/dkkmtg.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Access Statistics for this paper

More papers in Finance Working Papers from University of Aarhus, Aarhus School of Business, Department of Business Studies
Address: The Aarhus School of Business, Fuglesangs Allé 4, DK-8210 Aarhus V, Denmark
Contact information at EDIRC.
Series data maintained by Helle Vinbaek Stenholt ().