Debt Usage and Mortgage Choice: The FHA-Conventional Decision

Purchase of a house requires three interrelated household financial decisions: what level of debt to obtain, whether to select an adjustable or fixed rate mortgage (ARM or FRM), and whether to choose an FHA or a conventional loan. While some have analyzed the mortgage debt decision and the ARM/FRM c...

Full description

Saved in:
Bibliographic Details
Published in:Journal of urban economics 1997-03, Vol.41 (2), p.202-217
Main Authors: Hendershott, Patric H., LaFayette, William C., Haurin, Donald R.
Format: Article
Language:English
Subjects:
Debt
Money and credit
Mortgages
Urban economics
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
cited_by cdi_FETCH-LOGICAL-c474t-1edae1764e9c7571f2f69d2360a02650c4d374e2db1b74cc99c2ac65fb1b7ac63
cites cdi_FETCH-LOGICAL-c474t-1edae1764e9c7571f2f69d2360a02650c4d374e2db1b74cc99c2ac65fb1b7ac63
container_end_page 217
container_issue 2
container_start_page 202
container_title Journal of urban economics
container_volume 41
creator Hendershott, Patric H.
LaFayette, William C.
Haurin, Donald R.
description Purchase of a house requires three interrelated household financial decisions: what level of debt to obtain, whether to select an adjustable or fixed rate mortgage (ARM or FRM), and whether to choose an FHA or a conventional loan. While some have analyzed the mortgage debt decision and the ARM/FRM choice, virtually no one has studied the FHA/conventional mortgage choice or the interrelation among the mortgage debt and instrument decisions. In our sample of 819 young home purchasers, debt and mortgage choice is driven by a need to finesse the downpayment and monthly payment constraint ratios and to lower mortgage insurance costs.
doi_str_mv 10.1006/juec.1996.1094
format article
fullrecord <record><control><sourceid>proquest_cross</sourceid><recordid>TN_cdi_proquest_miscellaneous_38921339</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><els_id>S0094119096910943</els_id><sourcerecordid>38921339</sourcerecordid><originalsourceid>FETCH-LOGICAL-c474t-1edae1764e9c7571f2f69d2360a02650c4d374e2db1b74cc99c2ac65fb1b7ac63</originalsourceid><addsrcrecordid>eNp1UMFqGzEQFaGBuEmuOS8UeltXo92VVoUejFPXLQ65JGcha2djGXvlSmtD_j4j3F4COcy8Gem9x_AYuwM-Bc7lt-0R3RS0lrTq-oJNCJpSc9l-YhNOTyWA5lfsc0pbzgGaVk7Yj3tcj8Vzsi9Y2KErHkIcX_Iy3wTv8HvxtMFisZyV8zCccBh9GOyuuEfnE4037LK3u4S3__CaPS9-Ps2X5erx1-_5bFW6WtVjCdhZBCVr1E41CnrRS92JSnLLhWy4q7tK1Si6NaxV7ZzWTlgnmz7vNFTX7OvZ9xDD3yOm0ex9crjb2QHDMZmq1QKqShPxyzviNhwjnZwMtEpBpVqZ7aZnloshpYi9OUS_t_HVADc5S5OzNDlLk7MkwZ-zIOKBPv6zETETw2BOprI1UHulIp0i8FSC6pCRCyNAmc24J7P2bIaU2MljNMl5HBx2PqIbTRf8R3e8AT-Dkd0</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>1877137866</pqid></control><display><type>article</type><title>Debt Usage and Mortgage Choice: The FHA-Conventional Decision</title><source>International Bibliography of the Social Sciences (IBSS)</source><source>Elsevier</source><creator>Hendershott, Patric H. ; LaFayette, William C. ; Haurin, Donald R.</creator><creatorcontrib>Hendershott, Patric H. ; LaFayette, William C. ; Haurin, Donald R.</creatorcontrib><description>Purchase of a house requires three interrelated household financial decisions: what level of debt to obtain, whether to select an adjustable or fixed rate mortgage (ARM or FRM), and whether to choose an FHA or a conventional loan. While some have analyzed the mortgage debt decision and the ARM/FRM choice, virtually no one has studied the FHA/conventional mortgage choice or the interrelation among the mortgage debt and instrument decisions. In our sample of 819 young home purchasers, debt and mortgage choice is driven by a need to finesse the downpayment and monthly payment constraint ratios and to lower mortgage insurance costs.</description><identifier>ISSN: 0094-1190</identifier><identifier>EISSN: 1095-9068</identifier><identifier>DOI: 10.1006/juec.1996.1094</identifier><language>eng</language><publisher>New York, N.Y: Elsevier Inc</publisher><subject>Debt ; Money and credit ; Mortgages ; Urban economics</subject><ispartof>Journal of urban economics, 1997-03, Vol.41 (2), p.202-217</ispartof><rights>1997 Academic Press</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c474t-1edae1764e9c7571f2f69d2360a02650c4d374e2db1b74cc99c2ac65fb1b7ac63</citedby><cites>FETCH-LOGICAL-c474t-1edae1764e9c7571f2f69d2360a02650c4d374e2db1b74cc99c2ac65fb1b7ac63</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><link.rule.ids>314,780,784,27924,27925,33224</link.rule.ids><backlink>$$Uhttp://econpapers.repec.org/article/eeejuecon/v_3a41_3ay_3a1997_3ai_3a2_3ap_3a202-217.htm$$DView record in RePEc$$Hfree_for_read</backlink></links><search><creatorcontrib>Hendershott, Patric H.</creatorcontrib><creatorcontrib>LaFayette, William C.</creatorcontrib><creatorcontrib>Haurin, Donald R.</creatorcontrib><title>Debt Usage and Mortgage Choice: The FHA-Conventional Decision</title><title>Journal of urban economics</title><description>Purchase of a house requires three interrelated household financial decisions: what level of debt to obtain, whether to select an adjustable or fixed rate mortgage (ARM or FRM), and whether to choose an FHA or a conventional loan. While some have analyzed the mortgage debt decision and the ARM/FRM choice, virtually no one has studied the FHA/conventional mortgage choice or the interrelation among the mortgage debt and instrument decisions. In our sample of 819 young home purchasers, debt and mortgage choice is driven by a need to finesse the downpayment and monthly payment constraint ratios and to lower mortgage insurance costs.</description><subject>Debt</subject><subject>Money and credit</subject><subject>Mortgages</subject><subject>Urban economics</subject><issn>0094-1190</issn><issn>1095-9068</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>1997</creationdate><recordtype>article</recordtype><sourceid>8BJ</sourceid><recordid>eNp1UMFqGzEQFaGBuEmuOS8UeltXo92VVoUejFPXLQ65JGcha2djGXvlSmtD_j4j3F4COcy8Gem9x_AYuwM-Bc7lt-0R3RS0lrTq-oJNCJpSc9l-YhNOTyWA5lfsc0pbzgGaVk7Yj3tcj8Vzsi9Y2KErHkIcX_Iy3wTv8HvxtMFisZyV8zCccBh9GOyuuEfnE4037LK3u4S3__CaPS9-Ps2X5erx1-_5bFW6WtVjCdhZBCVr1E41CnrRS92JSnLLhWy4q7tK1Si6NaxV7ZzWTlgnmz7vNFTX7OvZ9xDD3yOm0ex9crjb2QHDMZmq1QKqShPxyzviNhwjnZwMtEpBpVqZ7aZnloshpYi9OUS_t_HVADc5S5OzNDlLk7MkwZ-zIOKBPv6zETETw2BOprI1UHulIp0i8FSC6pCRCyNAmc24J7P2bIaU2MljNMl5HBx2PqIbTRf8R3e8AT-Dkd0</recordid><startdate>19970301</startdate><enddate>19970301</enddate><creator>Hendershott, Patric H.</creator><creator>LaFayette, William C.</creator><creator>Haurin, Donald R.</creator><general>Elsevier Inc</general><general>Elsevier</general><general>Academic Press</general><scope>DKI</scope><scope>X2L</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>HJHVS</scope><scope>IBDFT</scope><scope>K30</scope><scope>PAAUG</scope><scope>PAWHS</scope><scope>PAWZZ</scope><scope>PAXOH</scope><scope>PBHAV</scope><scope>PBQSW</scope><scope>PBYQZ</scope><scope>PCIWU</scope><scope>PCMID</scope><scope>PCZJX</scope><scope>PDGRG</scope><scope>PDWWI</scope><scope>PETMR</scope><scope>PFVGT</scope><scope>PGXDX</scope><scope>PIHIL</scope><scope>PISVA</scope><scope>PJCTQ</scope><scope>PJTMS</scope><scope>PLCHJ</scope><scope>PMHAD</scope><scope>PNQDJ</scope><scope>POUND</scope><scope>PPLAD</scope><scope>PQAPC</scope><scope>PQCAN</scope><scope>PQCMW</scope><scope>PQEME</scope><scope>PQHKH</scope><scope>PQMID</scope><scope>PQNCT</scope><scope>PQNET</scope><scope>PQSCT</scope><scope>PQSET</scope><scope>PSVJG</scope><scope>PVMQY</scope><scope>PZGFC</scope><scope>8BJ</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>19970301</creationdate><title>Debt Usage and Mortgage Choice: The FHA-Conventional Decision</title><author>Hendershott, Patric H. ; LaFayette, William C. ; Haurin, Donald R.</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c474t-1edae1764e9c7571f2f69d2360a02650c4d374e2db1b74cc99c2ac65fb1b7ac63</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>1997</creationdate><topic>Debt</topic><topic>Money and credit</topic><topic>Mortgages</topic><topic>Urban economics</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Hendershott, Patric H.</creatorcontrib><creatorcontrib>LaFayette, William C.</creatorcontrib><creatorcontrib>Haurin, Donald R.</creatorcontrib><collection>RePEc IDEAS</collection><collection>RePEc</collection><collection>CrossRef</collection><collection>Periodicals Index Online Segment 19</collection><collection>Periodicals Index Online Segment 27</collection><collection>Periodicals Index Online</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - West</collection><collection>Primary Sources Access (Plan D) - International</collection><collection>Primary Sources Access &amp; Build (Plan A) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Midwest</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Northeast</collection><collection>Primary Sources Access (Plan D) - Southeast</collection><collection>Primary Sources Access (Plan D) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Southeast</collection><collection>Primary Sources Access (Plan D) - South Central</collection><collection>Primary Sources Access &amp; Build (Plan A) - UK / I</collection><collection>Primary Sources Access (Plan D) - Canada</collection><collection>Primary Sources Access (Plan D) - EMEALA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - North Central</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - South Central</collection><collection>Primary Sources Access &amp; Build (Plan A) - International</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - International</collection><collection>Primary Sources Access (Plan D) - West</collection><collection>Periodicals Index Online Segments 1-50</collection><collection>Primary Sources Access (Plan D) - APAC</collection><collection>Primary Sources Access (Plan D) - Midwest</collection><collection>Primary Sources Access (Plan D) - MEA</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - Canada</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - EMEALA</collection><collection>Primary Sources Access &amp; Build (Plan A) - APAC</collection><collection>Primary Sources Access &amp; Build (Plan A) - Canada</collection><collection>Primary Sources Access &amp; Build (Plan A) - West</collection><collection>Primary Sources Access &amp; Build (Plan A) - EMEALA</collection><collection>Primary Sources Access (Plan D) - Northeast</collection><collection>Primary Sources Access &amp; Build (Plan A) - Midwest</collection><collection>Primary Sources Access &amp; Build (Plan A) - North Central</collection><collection>Primary Sources Access &amp; Build (Plan A) - Northeast</collection><collection>Primary Sources Access &amp; Build (Plan A) - South Central</collection><collection>Primary Sources Access &amp; Build (Plan A) - Southeast</collection><collection>Primary Sources Access (Plan D) - UK / I</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - APAC</collection><collection>Primary Sources Access—Foundation Edition (Plan E) - MEA</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>Journal of urban economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Hendershott, Patric H.</au><au>LaFayette, William C.</au><au>Haurin, Donald R.</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Debt Usage and Mortgage Choice: The FHA-Conventional Decision</atitle><jtitle>Journal of urban economics</jtitle><date>1997-03-01</date><risdate>1997</risdate><volume>41</volume><issue>2</issue><spage>202</spage><epage>217</epage><pages>202-217</pages><issn>0094-1190</issn><eissn>1095-9068</eissn><abstract>Purchase of a house requires three interrelated household financial decisions: what level of debt to obtain, whether to select an adjustable or fixed rate mortgage (ARM or FRM), and whether to choose an FHA or a conventional loan. While some have analyzed the mortgage debt decision and the ARM/FRM choice, virtually no one has studied the FHA/conventional mortgage choice or the interrelation among the mortgage debt and instrument decisions. In our sample of 819 young home purchasers, debt and mortgage choice is driven by a need to finesse the downpayment and monthly payment constraint ratios and to lower mortgage insurance costs.</abstract><cop>New York, N.Y</cop><pub>Elsevier Inc</pub><doi>10.1006/juec.1996.1094</doi><tpages>16</tpages></addata></record>
fulltext fulltext
identifier ISSN: 0094-1190
ispartof Journal of urban economics, 1997-03, Vol.41 (2), p.202-217
issn 0094-1190
1095-9068
language eng
recordid cdi_proquest_miscellaneous_38921339
source International Bibliography of the Social Sciences (IBSS); Elsevier
subjects Debt
Money and credit
Mortgages
Urban economics
title Debt Usage and Mortgage Choice: The FHA-Conventional Decision
url http://sfxeu10.hosted.exlibrisgroup.com/loughborough?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-01-06T07%3A07%3A50IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-proquest_cross&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Debt%20Usage%20and%20Mortgage%20Choice:%20The%20FHA-Conventional%20Decision&rft.jtitle=Journal%20of%20urban%20economics&rft.au=Hendershott,%20Patric%20H.&rft.date=1997-03-01&rft.volume=41&rft.issue=2&rft.spage=202&rft.epage=217&rft.pages=202-217&rft.issn=0094-1190&rft.eissn=1095-9068&rft_id=info:doi/10.1006/juec.1996.1094&rft_dat=%3Cproquest_cross%3E38921339%3C/proquest_cross%3E%3Cgrp_id%3Ecdi_FETCH-LOGICAL-c474t-1edae1764e9c7571f2f69d2360a02650c4d374e2db1b74cc99c2ac65fb1b7ac63%3C/grp_id%3E%3Coa%3E%3C/oa%3E%3Curl%3E%3C/url%3E&rft_id=info:oai/&rft_pqid=1877137866&rft_id=info:pmid/&rfr_iscdi=true