a method and system for selecting a preferred debt instrument for an individual consumer , where the option adjusted spreads and risk measures of a plurality of debt instruments are determined and ranked using standard bond valuation methodology . a typical scenario involves a consumer inputting a plurality of mortgages and associated features and receiving the option adjusted spread and risk measure for each mortgage , from which the consumer may select the appropriate mortgage having the lowest option adjusted spread within his or her risk tolerance . these steps can be implemented by a computer which includes a central processing unit and a computer code operatively associated with the cpu . the relative option adjusted spreads and risk measures of various debt instruments can be displayed on a visual display or used to automatically commence the financing of a mortgage .