Debt usage and mortgage choice: the FHA-conventional decision
Article Abstract:
An individual buying a house has to decide whether to select an FHA or a conventional loan. There is a dearth of study focusing on the FHA/conventional mortgage choice and the interrelation among the mortgage debt and instrument decisions. To fill this shortage in literature, a study was conducted estimating a nested logit mortgage choice model. Data were gathered from the 1984 Metropolitan American Housing Survey, which netted a total sample of 819 young home purchasers. Findings revealed that debt and mortgage choice is influenced by the need to balance the downpayment and monthly payment constraint ratios and to minimize mortgage insurance expenses. Implications and recommendations for further studies are discussed.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1997
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A structural model of the demand for owner-occupied housing
Article Abstract:
Previous studies of housing demand did not develop a thorough explanation of consumer choice in relation to the quantity of housing. Research utilizing a structural model of owner-occupied housing demand indicates that the introduction of a loan-value ratio and planned length of stay into the structural housing demand equation is justified. Research indicates that reduced-form coefficients can change because of variations in structural relationships. Additionally, results reveal housing demand is affected by the ratio of mortgage loan to house value and the planned length of stay in a house.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1989
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Effects of income variability on the demand for owner-occupied housing
Article Abstract:
The extent to which uncertainty tied to income stream affects demand for owner-occupied housing is investigated. Theoretical models result in an ambiguous sign for change in consumption direction, but empirical findings mesh with the hypothesis that housing consumption falls when uncertainty of income receipt grows. Specifically, among a sample of military employees, income earned by wives had minimal or no influence on housing demand. Evidence implies that housing demand is affected by pension rights, and the effect is stronger the closer one is to retirement.
Publication Name: Journal of Urban Economics
Subject: Government
ISSN: 0094-1190
Year: 1987
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