Factors affecting borrower choice between fixed and adjustable rate mortgages.: An article from: Journal of Consumer Affairs

This digital document is an article from Journal of Consumer Affairs, published by American Council on Consumer Interests on December 22, 1992. The length of the article is 4007 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.

From the supplier: For this study, data were collected from 352 mortgage borrowers to determine whether mortgage decisions are economically rational with regard to the type of mortgage believed to have the higher expected cost, and how various factors affect mortgage choice. For many borrowers, the type of mortgage with actual higher expected cost (based on interest rates and residency expectations) is not the type of mortgage thought to have the higher expected cost. The financial planning aspect of a mortgage choice and the risk factor have a significant influence on this choice, whereas lender constraints and the financial cost aspect do not. These findings suggest that consumer education programs focusing on mortgage choice are needed. (Reprinted by permission of the publisher.)

Citation Details
Title: Factors affecting borrower choice between fixed and adjustable rate mortgages.
Author: Mark Lino
Publication:Journal of Consumer Affairs (Refereed)
Date: December 22, 1992
Publisher: American Council on Consumer Interests
Volume: v26 Issue: n2 Page: p262(12)

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