Who Selected Adjustable-Rate Mortgages? Evidence from the 1989-2007 Surveys of Consumer Finances

46 Pages Posted: 5 Nov 2009  

John L. Beshears

Harvard Business School; National Bureau of Economic Research (NBER)

Daniel Bergstresser

Harvard Business School

Multiple version iconThere are 2 versions of this paper

Date Written: November 4, 2009

Abstract

We find evidence that households selecting Adjustable Rate Mortgages (ARMs) during the recent decade were disproportionately those who were less suspicious or who may have had difficulty understanding complicated ARM features that became commonplace prior to the financial crisis.

Keywords: Mortgages, ARMs

JEL Classification: G21

Suggested Citation

Beshears, John L. and Bergstresser, Daniel, Who Selected Adjustable-Rate Mortgages? Evidence from the 1989-2007 Surveys of Consumer Finances (November 4, 2009). Available at SSRN: https://ssrn.com/abstract=1499959 or http://dx.doi.org/10.2139/ssrn.1499959

John Leonard Beshears

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Daniel B. Bergstresser (Contact Author)

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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