Financial illiteracy and mortgage refinancing decisions

被引：24

作者：

Bajo, Emanuele ^{[1
]}

Barbi, Massimiliano ^{[2
]}

机构：

[1] Univ Bologna, Dept Econ, Piazza Scaravilli 2, I-40126 Bologna, Italy

[2] Univ Bologna, Dept Management, Via Capo Lucca 34, I-40126 Bologna, Italy

来源：

JOURNAL OF BANKING & FINANCE | 2018年 / 94卷

关键词：

Mortgage refinancing; Financial literacy; Household finance; LITERACY; INVESTMENT; MISTAKES; SOPHISTICATION; PROPENSITY; HOUSEHOLDS; BORROWERS; MARKET; WEALTH;

D O I：

10.1016/j.jbankfin.2018.08.001

中图分类号：

F8 [财政、金融];

学科分类号：

0202 ;

摘要：

We analyze the effect of an exogenous shock to the Italian mortgage market, where a reform has abolished prepayment fees and simplified mortgage refinancing, making it a virtually cost-free decision for households. This law, along with the considerable drop in market interest rates, has generated important gains for fixed-rate borrowers, which we quantify at up to 15% of the principal balance. Nevertheless, only about 13% of borrowers have locked in this opportunity. We study the relationship between this sluggish behavior and their level of financial literacy. (C) 2018 Elsevier B.V. All rights reserved.

引用

页码：279 / 296

页数：18

共 40 条

[1]

Agarwal S, 2009, 14659 NBER

[2] Why Do Borrowers Make Mortgage Refinancing Mistakes? [J].

Agarwal, Sumit ;

Rosen, Richard J. ;

Yao, Vincent .

MANAGEMENT SCIENCE, 2016, 62 (12) :3494-3509

[3] Systematic mistakes in the mortgage market and lack of financial sophistication [J].

Agarwal, Sumit ;

Ben-David, Itzhak ;

Yao, Vincent .

JOURNAL OF FINANCIAL ECONOMICS, 2017, 123 (01) :42-58

[4] Optimal Mortgage Refinancing: A Closed-Form Solution [J].

Agarwal, Sumit ;

Driscoll, John C. ;

Laibson, David I. .

JOURNAL OF MONEY CREDIT AND BANKING, 2013, 45 (04) :591-622

[5]

Agnew J.R., 2005, J BEHAV FINANC, V6, P57, DOI [10.1207/s15427579jpfm06022, DOI 10.1207/S15427579JPFM06022, DOI 10.1207/S15427579JPFM0602_2]

[6]

Andersen Steffen., 2018, Sources of Inaction in Household Finance: Evidence from the Danish Mortgage Market

[7]

[Anonymous], 2011, J FINANCIAL EC, DOI DOI 10.1016/j.jfineco.2011.03.006

[8] Structural change in the mortgage market and the propensity to refinance [J].

Bennett, P ;

Peach, R ;

Peristiani, S .

JOURNAL OF MONEY CREDIT AND BANKING, 2001, 33 (04) :955-975

[9]

Brown J. R., 2017, GROWING FINANCE

[10] The determinants of household's bank switching [J].

Brunetti, M. ;

Ciciretti, R. ;

Djordjevic, Lj. .

JOURNAL OF FINANCIAL STABILITY, 2016, 26 :175-189

← 1 2 3 4 →