Characteristics of Recent Adjustable-Rate Mortgage Borrowers

12 Pages Posted: 12 Apr 2013

See all articles by Michael S. Finke

Michael S. Finke

The American College

Sandra J. Huston

Texas Tech University

Emilian Siman

University of Missouri at Columbia - Personal Financial Planning

Mel Corlija

University of Missouri at Columbia - Personal Financial Planning

Date Written: 2006

Abstract

The demographic characteristics of recent adjustable and fixed-rate mortgage borrowers are compared among nationally representative survey cross-sectional data at three-year intervals from 1989 through 2001. While the overall proportion of ARMs in relation to FRMs has decreased, a trend toward increased use of adjustable-rate mortgages among lower income, less wealthy, less credit worthy, and single-headed households appears over this 13-year period. Findings from this study point to the need for targeted financial education to ensure that vulnerable households are making rational consumer decisions with full information regarding interest rate risk associated with adjustable-rate mortgage products.

Keywords: Mortgage loans, adjustable-rate mortgages, mortgage trends

Suggested Citation

Finke, Michael S. and Huston, Sandra J. and Siman, Emilian and Corlija, Mel, Characteristics of Recent Adjustable-Rate Mortgage Borrowers (2006). Journal of Financial Counseling and Planning, Vol. 16, No. 2, 2006, Available at SSRN: https://ssrn.com/abstract=2248832

Michael S. Finke (Contact Author)

The American College ( email )

Bryn Mawr, PA 19010
United States

Sandra J. Huston

Texas Tech University ( email )

2500 Broadway
Lubbock, TX 79409
United States

Emilian Siman

University of Missouri at Columbia - Personal Financial Planning ( email )

332 Cornell Hall
Columbia, MO Columbia 65211
United States

Mel Corlija

University of Missouri at Columbia - Personal Financial Planning ( email )

332 Cornell Hall
Columbia, MO Columbia 65211
United States

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