Adjustable- or Fixed-Rate Mortgage? Optimal Mortgage Choice with Idiosyncratic Income Risk

2016 ◽  
Author(s):  
Esben HHjgaard Christensen
Keyword(s):  
Fixed Rate ◽  
Income Risk ◽  
Mortgage Choice ◽  
Fixed Rate Mortgage

Income Risk and Mortgage Choice Among Japanese Households

2013 ◽  
Author(s):  
Michio Naoi ◽  
Yoko Moriizumi ◽  
Norifumi Yukutake
Keyword(s):  
Income Risk ◽  
Mortgage Choice

scholarly journals Securitization and the Fixed-Rate Mortgage

2014 ◽  
Vol 28 (1) ◽  
pp. 176-211 ◽  
Author(s):  
Andreas Fuster ◽  
James Vickery
Keyword(s):  
Fixed Rate ◽  
Fixed Rate Mortgage

Exploring the Role of Financial Disclosure Forms in Mortgage Type Selection

2017 ◽  
Vol 28 (2) ◽  
pp. 285-299
Author(s):  
Travis P. Mountain ◽  
Michael S. Gutter ◽  
Jorge Ruiz-Menjivar ◽  
Zeynep Çopur
Keyword(s):  
Treatment Group ◽  
Federal Reserve ◽  
Group Treatment ◽  
Financial Disclosure ◽  
Fixed Rate ◽  
Type Selection ◽  
The Difference ◽  
Adjustable Rate ◽  
Adjustable Rate Mortgage ◽  
Fixed Rate Mortgage

The purpose of this study was to determine whether using a financial disclosure form in a controlled setting can influence consumers’ mortgage selection. This study used a 2 × 2 experimental design where participants were assigned randomly to a control or treatment group. Treatment group participants received a Federal Reserve Board document that contained information explaining the difference between an adjustable-rate mortgage (ARM) and a fixed-rate mortgage (FRM). All participants were presented with two distinct scenarios and were asked to determine the most appropriate mortgage for each. Logistic regression results suggested that receiving the Federal Reserve Board document does make a difference in consumers’ mortgage choice in hypothetical scenarios. Financial knowledge and Truth in Lending Act knowledge were also were important predictors.

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