Chambers, Matthew; Garriga, Carlos; Schlagenhauf, Don - Federal Reserve Bank of St. Louis - 2009
’s housing finance decision. The model suggests that the mortgage structure preferred by a household is dependent on age and …The objective of this paper is to understand how loan structure affects (i) the borrower’s selection of a mortgage … contract and (ii) the aggregate economy. We develop a quantitative equilibrium theory of mortgage choice where households can …