A New Look on the Profitability of Fixed and Indexed Mortgage Products

This study presents a novel approach to analyzing the present value of total profit for fixed and indexed mortgage products in order to determine the optimal mortgage interest rate that would maximize the bank’s expected total profit based on applying the approach used in operations research to the...

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Bibliographic Details

Published in:	Mathematics
Main Authors:	Paoyu Huang, Chih-Te Yang, Yuhsin Chen, Yensen Ni
Format:	Article
Language:	English
Published:	MDPI AG 2023-08-01
Subjects:	cost–benefit analysis fixed-rate mortgage indexed mortgage lending rate defaults maximum profit
Online Access:	https://www.mdpi.com/2227-7390/11/17/3631