leverage, precautionary saving in liquid assets and illiquid home equity, debt repayment, mortgage refinancing, and default …We estimate a structural model of household liquidity management in the presence of long-term mortgages. Households … accounts for the run-up in household debt and consumption boom prior to the financial crisis, their subsequent collapse, and …

Mortgage refinancing activity associated with extraction of home equity contains a strongly counter-cyclical component … empirically evaluate its predictions for the households' choices of leverage, liquid assets, and mortgage refinancing using micro … consistent with household demand for liquidity. We estimate a structural model of liquidity management featuring counter …

borrower types and provides better pricing. We test the effectiveness of a specific set of contracts in the mortgage market …: mortgage points. Points allow borrowers to exchange an upfront amount for a decrease in the mortgage rate. We document that, on … mistakes on other dimensions (e.g., inefficiently refinancing their mortgages). Overall, our results show that borrowers …