Presents a study which offers simulation approach model by which borrowers may more effectively evaluate fixed rate mortgage (FRM) and adjustable rate mortgage (ARM) choice. Identification of pricing variables as an important determinant of choice; Construction of model parameters comparing present value costs of ARM and FRM; Presentation of simulation outputs.
Templeton, William K., Robert S. Main, and J. B. Orris, "A Simulation Approach to the Choice Between Fixed and Adjustable Rate Mortgages." Financial Services Review, v. 5 (2), pp. 101-117.