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Journal Article

Evidence on the benefits of alternative mortgage products

Authors

Publication date

Aug 2013

Summary

Alternative mortgage products have been identified by many as culprits in the financial crisis. However, because of their lower initial mortgage payments relative to loan amount, they may be a valuable tool for households that expect higher and more certain future labor income, and that wish to smooth consumption over the life-cycle. Using U.K. household-level panel data, this paper provides evidence in support of this hypothesis and highlights other important benefits of alternative mortgages, including portfolio diversification, tax benefits, and a reduction in the transaction costs incurred in housing transactions.

Published in

The Journal of Finance

Volume and page numbers

68 , 1663 -1690

DOI

http://dx.doi.org/10.1111/jofi.12049

ISSN

16

Subjects

Savings And Assets, Taxation, Finance, and Housing Market

Links

University of Essex, Albert Sloman Library Periodicals *restricted to University of Essex registered users* - http://serlib0.essex.ac.uk/record=b1599669~S5

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