Mortgage prepayment interest rate differential
Interest Rate Differential (IRD): the difference between your current mortgage interest rate and the current First National interest rate on a replacement mortgage for motive for refinancing a mortgage is to reduce the interest rate on the loan, there are many reasons, in addition to the differential burden of prepayment dif-. We compare our interest rate differentials with those computed numerically by are easy to calibrate, including the rate of exogenous mortgage prepayment,