“…1 The studies on mortgage curtailment behavior are still limited, with most of them focusing on the importance of curtailment ( e.g ., Hayre and Lauterbach 1991, Chinloy 1993, Lin et al . 2005) and its determinants ( e.g ., Budinger and Fan 1995, Adelman, Cross and Shrider 2010). Meanwhile, although an extensive literature exists on the role of the interest rate in the full prepayment of a mortgage, rarely has the research examined how this rate affects the borrower's curtailments (partial prepayments).…”