Publication type
Journal Article
Author
Publication date
August 15, 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
Volume: 68 , p.1 -1
DOI
http://dx.doi.org/10.1111/jofi.12049
ISSN
221082
Subjects
#523644