Housing Tenure and Mortgage Choice
This paper examines the relationship between housing tenure and mortgage contract. We present a model showing that, given expected mobility, borrowers will have incentive to self-select into the appropriate mortgage product such that their fixed-rate period is directly related to their probability o...
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| Veröffentlicht in: | The journal of real estate finance and economics 2011-02, Vol.42 (2), p.162-180 |
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| container_end_page | 180 |
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| container_issue | 2 |
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| container_title | The journal of real estate finance and economics |
| container_volume | 42 |
| creator | Fortowsky, Elaine LaCour-Little, Michael Rosenblatt, Eric Yao, Vincent |
| description | This paper examines the relationship between housing tenure and mortgage contract. We present a model showing that, given expected mobility, borrowers will have incentive to self-select into the appropriate mortgage product such that their fixed-rate period is directly related to their probability of moving. We empirically test this hypothesis using housing tenure data derived from a large national database of repeat mortgage transactions. After controlling for borrower characteristics, the mobility hazards of 3/1, 5/1 and 7/1 ARMs, compared to a 30-year fixed rate, are estimated to be 28%, 14% and 11% higher, respectively |
| doi_str_mv | 10.1007/s11146-009-9193-z |
| format | Article |
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| ispartof | The journal of real estate finance and economics, 2011-02, Vol.42 (2), p.162-180 |
| issn | 0895-5638 1573-045X |
| language | eng |
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| source | SpringerNature Journals; EBSCOhost Business Source Complete |
| subjects | Adjustable rate mortgages Analysis ARM Contracts Cost control Discounts Economics Economics and Finance Financial Services Fixed rates Foreclosure Geographic mobility Households Housing Housing tenure Interest rates Land tenure Lines of credit Loans Mortgage loans Mortgage markets Mortgages Predatory lending Product reviews Real estate Real estate market Regional/Spatial Science Studies Subprime lending |
| title | Housing Tenure and Mortgage Choice |
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