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Short-term residential mortgage contracts in American economic history.
- Source :
-
Explorations in Economic History . Jan2021, Vol. 79, pN.PAG-N.PAG. 1p. - Publication Year :
- 2021
-
Abstract
- Short-term contracts were a staple of the American residential mortgage market until the Great Depression, after which policymakers pushed for longer terms in order to eliminate refinancing risk. Using a first-of-its-kind data set on mortgages outstanding in 1930, this paper suggests that short-term contracts had remained popular until the Depression because of their appeal to a class of well-off sophisticated borrowers who were undeterred by refinancing risk, and who valued flexible amortization. In contrast, typical wage earners preferred longer terms in order to eliminate refinancing risk, even as they took on the burden of regular amortization payments. [ABSTRACT FROM AUTHOR]
- Subjects :
- *MORTGAGES
*CONTRACTS
*GREAT Depression, 1929-1939
Subjects
Details
- Language :
- English
- ISSN :
- 00144983
- Volume :
- 79
- Database :
- Academic Search Index
- Journal :
- Explorations in Economic History
- Publication Type :
- Academic Journal
- Accession number :
- 147775707
- Full Text :
- https://doi.org/10.1016/j.eeh.2020.101363