Study confirms Option Arms not evil

September 24, 2007

The study comes from NYU and Columbia, two universities known for academia not athletics:

according to a new study by professors from Columbia and New York universities, the “optimal” mortgage in a perfect world is precisely that kind of loan—an adjustable-rate mortgage with an option for negative amortization and a ban (or at least severe restriction) on prepayment.

Read the full article from Business Week

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