Download or read book Consumer Response to Adjustable Rate Mortgages written by Dixie L. Mills and published by . This book was released on 1986 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Consumer Spending Response to Mortgage Resets written by Kanav Bhagat and published by . This book was released on 2017 with total page 32 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this report, we examine how a sample of US homeowners changed their credit card spending in response to a predictable drop in their mortgage payment driven by the Federal Reserve's low interest rate policy that followed the Great Recession. Using a de-identified sample of Chase customers who had a hybrid adjustable-rate mortgages (ARM) and a Chase credit card, we analyze changes in credit card spending and revolving balance leading up to and after mortgage reset. We organize our results into four findings. First, forty-four percent of the homeowners in our sample experienced a large drop in their hybrid ARM payment at reset, which on average represented over 5 percent of their monthly income. Second, homeowners increased their spending by 9 percent in advance of the anticipated drop in their mortgage payments and by 15 percent after reset, despite a considerable drop in housing wealth. Third, homeowners used credit card borrowing to finance 21 percent of their pre-reset anticipatory spending increase, and post-reset they further increased their revolving balances. Over the full two year period, their total spending increase exceeded their mortgage-related savings by 4 percent. Fourth, Homeowners used the savings from lower hybrid ARM payments to make more purchases across all spending categories, notably home improvements and healthcare. Overall, we find that in a declining interest rate environment, the income channel that transmits interest rate policy to homeowners with ARMs is automatic, the consumer response is considerable, and that there are both anticipatory and contemporaneous increases in consumption. Additional research is needed to understand if the income channel also has the intended and expected contractionary effects on consumer spending as policy rates move higher. Armed with a full understanding, housing policy makers could evaluate the policies that influence which type of mortgage (fixed-rate or variable-rate) borrowers choose and should consider the effects these policies will have on the ability of monetary policy to impact personal consumption through the business cycle.

Download or read book Consumer Mortgage Choice Between Fixed rate Mortgages and Adjustable rate Mortgages written by Hsiu-Wen Wu and published by . This book was released on 1992 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Consumer Handbook on Adjustable rate Mortgages written by and published by . This book was released on 2014 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Adjustable rate Home Mortgages and the Demand for Mortgage Credit written by John L. Goodman and published by . This book was released on 1985 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Consumer Acceptance of the Adjustable Rate Mortgage written by Tracy Leigh Bairas and published by . This book was released on 1984 with total page 100 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book How Do Mortgage Rate Resets Affect Consumer Spending and Debt Repayment Evidence from Canadian Consumers written by Katya Kartashova and published by . This book was released on 2020 with total page 58 pages. Available in PDF, EPUB and Kindle. Book excerpt: "We study the causal effect of mortgage rate changes on consumer spending, debt repayment, and defaults during an expansionary and a contractionary monetary policy episode in Canada. Our identification takes advantage of the fact that the interest rates of short-term fixed-rate mortgages (the dominant product in Canada's mortgage market) have to be reset according to the prevailing market interest rates at predetermined time intervals. Our empirical strategy exploits this exogenous variation in the timing of mortgage rate resets. We find asymmetric responses of consumer durable spending, deleveraging, and defaults. These results can be rationalized by the cash-flow effect in conjunction with changes in consumers' expectations about future interest rates. Our findings help us to understand the responses of the household sector to changes in the interest rate, especially in countries where variable-rate, adjustable-rate, and short-term fixed-rate mortgages are prevalent"--Abstract, page 2.

Download or read book Consumer Handbook on Adjustable Rate Mortgages written by Federal Board and published by CreateSpace. This book was released on 2013-02-18 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: This handbook gives an overview of ARM's, explains how ARM's work, and discusses some of the issues that you might face as a borrower.

Download or read book Dangerous Loans written by Jo J. Carrillo and published by . This book was released on 2012 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This article analyzes the relationship between innovative mortgage products, like adjustable-rate mortgages, and the first wave of consumer legal challenges brought against those products under the Truth in Lending Act (TILA), 15 U.S.C. section 1601, et seq. (TILA).

Download or read book Consumer Handbook on Adjustable rate Mortgages ARM written by and published by . This book was released on 2006 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Consumer handbook on adjustable rate mortgages written by Board of Governors of the Federal Reserve System (U.S.) and published by . This book was released on 2012 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Adjustable rate Mortgages and the Demand for Mortgage Credit written by John L. Goodman and published by . This book was released on 1990 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Adjustable Rate Mortgage and Illinois Consumers written by Mona J. Gardner and published by . This book was released on 1985 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Adjustable Rate Mortgages written by United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on Financial Institutions and Consumer Affairs and published by . This book was released on 1985 with total page 436 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Consumer Predictability of Interest Rates as Measured by the Adjustable Rate Mortgage Percentage written by Liam Cox and published by . This book was released on 2005 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Mortgage Answer Book written by John J. Talamo and published by SphinxLegal. This book was released on 2005 with total page 242 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Who Selected Adjustable Rate Mortgages written by Daniel Bergstresser and published by . This book was released on 2010 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: We find evidence that households selecting adjustable-rate mortgages (ARMs) during the recent decade were disproportionately those who were less suspicious or who may have had difficulty understanding complicated ARM features that became commonplace prior to the financial crisis.