The last decade has brought about substantial mortgage innovation and increased refinancing. The objective of this … paper is to understand the determinants and implications of mortgage choice in the context of a general equilibrium model … with incomplete markets. The equilibrium characterization allows us to study the impact of mortgage financing decisions in …

commuting, and about how much to spend on a mortgage. By matching the results to data (at the ZIP-code level) about relative … commuting, and they find that people who live in the high-decline areas believe it is appropriate to spend more on a mortgage. …

In a recent set of influential papers, researchers have argued that residential mortgage foreclosures reduce the sale … mortgage distress on house prices. …

done to stop it. We use an economic model to focus on two key decisions: the borrower's choice to default on a mortgage and … illustrate that unaffordable loans, defined as those with high mortgage payments relative to income at origination, are unlikely …

In a recent set of influential papers, researchers have argued that residential mortgage foreclosures reduce the sale … mortgage distress on house prices. …