How Do Households Make Mortgage Choices?
Real Estate Economics, Virtual Issue, 2016
9 Pages Posted: 11 Nov 2016 Last revised: 7 Dec 2016
Date Written: November 11, 2016
This paper reviews recent literature on how households make decisions regarding residential mortgages. We focus on recent publications in Real Estate Economics that are related to households’ mortgage choices.
The paper covers four areas:
(1) the role of intermediaries such as mortgage brokers;
(2) how households choose between a fixed and an adjustable rate mortgage;
(3) how homeowners choose between other features of mortgage contracts; and
(4) reverse mortgages.
Keywords: Mortgage Choice; Broker; Contracts; Reverse Mortgages
Suggested Citation: Suggested Citation