Advanced Search
MyIDEAS: Login to save this article or follow this journal

Asset Status Proxies and Consumer Preference for ARMs: An Empirical Investigation Using Probit Analysis


Author Info

Registered author(s):


    This study investigates whether consideration of proxies for borrower asset status can contribute to understanding of consumer FRM vs. ARM mortgage choice behavior. In the context of probit analysis, it is found that considerations of asset status proxies significantly improves statistical models of the mortgage choice situation. There are strong empirical indications that the ARM preferences of low-asset borrowers are more strongly influenced by the general level of interest rates than are the ARM preferences of high-asset borrowers. The empirical results also indicate that high-asset borrowers are more sensitive to the FRM-ARM interest rate differential than are low-asset borrowers.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    File Function: Full text
    Download Restriction: no

    Bibliographic Info

    Article provided by American Real Estate Society in its journal Journal of Real Estate Research.

    Volume (Year): 3 (1988)
    Issue (Month): 1 ()
    Pages: 37-45

    as in new window
    Handle: RePEc:jre:issued:v:3:n:1:1988:p:37-45

    Contact details of provider:
    Postal: American Real Estate Society Clemson University School of Business & Behavioral Science Department of Finance 401 Sirrine Hall Clemson, SC 29634-1323
    Web page:

    Order Information:
    Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323

    Related research


    Find related papers by JEL classification:


    No references listed on IDEAS
    You can help add them by filling out this form.


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Donald R. Epley & Alireza Tahai, 1989. "Consumer-Revealed Preferences for a Margin and Other Associated Adjustable-Rate Mortgage Features," Journal of Real Estate Research, American Real Estate Society, vol. 4(1), pages 37-51.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:3:n:1:1988:p:37-45. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.