A limited understanding of mortgage contracts and the risks involved may have contributed to the origination of the … financial crisis. We have designed a special questionnaire to relate mortgage loan decisions to financial literacy and financial … advice. Our findings show that homeowners seem well aware of mortgage risks. Loans are perceived more risky when they are …

of mortgage type. The results show that households reporting higher financial literacy and lower risk aversion are 55 to … general, alternative mortgage products, as opposed to traditional mortgages, are chosen by wealthier, older, and more …

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 … overestimate how long they will stay with the mortgage …

Policymakers have expressed concern that some mortgage holders do not understand or correctly choose their mortgage … products, especially alternative mortgage products (AMPs) with back-loaded payments. Using a specially design question module … standard repayment mortgage. We show poor financial literacy and present bias raise the likelihood of choosing an AMP …

This study highlights the importance and impacting channels of financial literacy on household mortgage decisions in a … mortgage demand in terms of loan-to-value ratio. Our further tests provide economic explanations that households with higher …. Moreover, we find financial education programs increase formal mortgage demand over informal borrowing to finance housing …

Choosing a mortgage is one of the most important financial decisions made by a household. Financial innovation has … given rise to more complex mortgage products with back-loaded payments, known as 'Alternative Mortgage Products' (AMPs), or … 'nterest-Only Mortgages'. Using a specially designed question module in a representative survey of UK mortgage holders, we …

This study investigated the effect of objective and subjective financial literacy on mortgage payment delinquency using …