Author: Hsiu-Wen WuPublisher:
ISBN:
Category :
Languages : en
Pages : 386
Book Description
Consumer Mortgage Choice Between Fixed-rate Mortgages and Adjustable-rate Mortgages
Author: Hsiu-Wen WuFactors Affecting Borrower Choice Between the Fixed and Adjustable Rate Mortgages
Author: Mark Christopher LinoPublisher:
ISBN:
Category : Interest rates
Languages : en
Pages : 232
Book Description
Consumer Handbook on Adjustable-Rate Mortgages
Author: Barry LeonardPublisher: DIANE Publishing
ISBN: 9781422317532
Category : Reference
Languages : en
Pages : 42
Book Description
Adjustable-rate mortgages (ARMs) are loans with interest rates that change. ARMs may start with lower monthly payments than fixed-rate mortgages, but your monthly payments could change & go up -- sometimes by a lot; they may not go down much, or at all -- even if interest rates go down; you could end up owing more money than you borrowed; & if you want to pay off your ARM early to avoid higher payments, you might have to pay a penalty. The handbook explains how ARMs work & discusses some of the issues that borrowers may face. It includes ways to reduce the risks & gives some pointers about advertising & other ways you can get info. from lenders. This handbook can help you ask the right questions & figure out whether an ARM is right for you. Illus.
Housing Financing Behavior
Author: Hsiu-Wen WuPublisher:
ISBN:
Category : Adjustable rate mortgages
Languages : en
Pages : 764
Book Description
Mortgage Timing
Author: Ralph S. J. KoijenPublisher:
ISBN:
Category :
Languages : en
Pages : 67
Book Description
We study how the term structure of interest rates relates to mortgage choice, both at the household and the aggregate level. A simple utility framework of mortgage choice points to the long-term bond risk premium as theoretical determinant: when the bond risk premium is high, fixed-rate mortgage payments are high, making adjustable-rate mortgages more attractive. This long-term bond risk premium is markedly different from other term structure variables that have been proposed, including the yield spread and the long yield. We confirm empirically that the bulk of the time variation in both aggregate and loan-level mortgage choice can be explained by time variation in the bond risk premium. This is true whether bond risk premia are measured using forecasters' data, a VAR term structure model, or from a simple household decision rule based on adaptive expectations. This simple rule moves in lock-step with mortgage choice, lending credibility to a theory of strategic mortgage timing by households.
What Calls to ARMs?
Author: Cristian BadarinzaPublisher:
ISBN:
Category : Adjustable rate mortgages
Languages : en
Pages : 32
Book Description
The relative popularity of adjustable-rate mortgages (ARMs) and fixed-rate mortgages (FRMs) varies considerably both across countries and over time. We ask how movements in current and expected future interest rates affect the share of ARMs in total mortgage issuance. Using a nine-country panel and instrumental variables methods, we present evidence that near-term (one-year) rational expectations of future movements in ARM rates do affect mortgage choice, particularly in more recent data since 2001. However longer-term (three-year) rational forecasts of ARM rates have a weaker effect, and the current spread between FRM and ARM rates also matters, suggesting that households are concerned with current interest costs as well as with lifetime cost minimization. These conclusions are robust to alternative (adaptive and survey-based) models of household expectations.
The Myopic Choice Between Fixed and Adjustable Rate Mortgages in Flanders
Author: Sven DamenA Simulation Approach to the Choice between Fixed and Adjustable Rate Mortgages
Author: William K. TempletonPublisher:
ISBN:
Category :
Languages : en
Pages :
Book Description
Mortgage borrowers appear to have a difficult time evaluating the costs and risks associated with the choice between a fixed rate mortgage and an adjustable rate mortgage (ARM). This study uses a simulation approach to model the choice. We represent the risk of the ARM with distributions of present value cost differentials for a variety of mortgage life periods. We provide insight on the financial planning aspect by modeling the impact of mortgage rate changes on the size of payments for ARMs. Simulation can yield non-intuitive results that may lead to better decision making by borrowers.
Adjustable Rate Mortgages (ARM's)
Author: United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Housing and Community DevelopmentPublisher:
ISBN:
Category : Adjustable rate mortgages
Languages : en
Pages : 1030
Book Description
Choice of Mortgage Contracts
Author: Brahima CoulibalyPublisher:
ISBN:
Category : Consumers
Languages : en
Pages : 54
Book Description