TY  - JOUR
AU  - Agarwal,Sumit
AU  - Driscoll,John C.
AU  - Laibson,David
TI  - Optimal Mortgage Refinancing: A Closed Form Solution
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13487
PY  - 2007
Y2  - October 2007
UR  - http://www.nber.org/papers/w13487
L1  - http://www.nber.org/papers/w13487.pdf
N1  - Author contact info:
Sumit Agarwal
Associate Professor of Finance and Real Estate
NUS Business School
Mochtar Raidy Building, BIZ1
15 Kent Ridge Road
Singapore, 119245
Tel: +65 8118 9025
E-Mail: ushakri@yahoo.com

John C. Driscoll
Federal Reserve Board
20th and Constitution Ave., NW
Washington, DC 20551
Tel: (202)452-2628
Fax: (202)452-2301
E-Mail: John.C.Driscoll@frb.gov

David Laibson
Department of Economics
Littauer M-12
Harvard University
Cambridge, MA 02138
Tel: 617/496-3402
Fax: 617/495-8570
E-Mail: dlaibson@gmail.com
AB  - 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.
ER  -