Fixed Come Hell or High Water? Selection and Prepayment of Fixed‐Rate Mortgages Outside the United States
研究了英国、加拿大、爱尔兰、澳大利亚和新西兰的固定利率抵押贷款提前还款决策，发现家庭通过优化提前还款策略和选择固定利率期限及违约费用结构可获得显著经济利益。
We examine the decision to prepay a fixed‐rate mortgage in the United Kingdom, Canada, Ireland, Australia and New Zealand. These countries are characterized by having substantial fees which are associated with breaking a fixed‐rate mortgage. We develop a model which allows for fluctuations both in banks’ wholesale rates and credit spreads. We find that households can achieve economically significant benefits both from following an optimal prepayment strategy contingent on the break fee used by their bank and also by selection of fixed interest rate term and (where available) break fee structure.