Flesaker, Bjorn; Ronn, Ehud I - In: The Journal of Real Estate Finance and Economics 6 (1993) 3, pp. 251-75
The purpose of this article is to propose and price a new type of adjustable-rate mortgage: the FIREARM ("Falling Interest Rate Adjustable-Rate Mortgage"). The interest payments on this mortgage adjust downward whenever interest rates decline, while remaining stable when interest rates increase....
