Mortgage {AER}

Fixed versus Adjustable Mortgages

Description

Cross-section data about fixed versus adjustable mortgages for 78 households.

Usage

data("Mortgage")

Format

A data frame containing 78 observations on 16 variables.

rate

Factor with levels "fixed" and "adjustable".

age

Age of the borrower.

school

Years of schooling for the borrower.

networth

Net worth of the borrower.

interest

Fixed interest rate.

points

Ratio of points paid on adjustable to fixed rate mortgages.

maturities

Ratio of maturities on adjustable to fixed rate mortgages.

years

Years at the present address.

married

Factor. Is the borrower married?

first

Factor. Is the borrower a first-time home buyer?

selfemp

Factor. Is the borrower self-employed?

tdiff

The difference between the 10-year treasury rate less the 1-year treasury rate.

margin

The margin on the adjustable rate mortgage.

coborrower

Factor. Is there a co-borrower?

liability

Short-term liabilities.

liquid

Liquid assets.

Source

The data is from Baltagi (2002).

References

Baltagi, B.H. (2002). Econometrics, 3rd ed. Berlin, Springer.

Dhillon, U.S., Shilling, J.D. and Sirmans, C.F. (1987). Choosing Between Fixed and Adjustable Rate Mortgages. Journal of Money, Credit and Banking, 19, 260–267.

See Also

Baltagi2002

Examples

data("Mortgage")
plot(rate ~ interest, data = Mortgage, breaks = fivenum(Mortgage$interest))
plot(rate ~ margin, data = Mortgage, breaks = fivenum(Mortgage$margin))
plot(rate ~ coborrower, data = Mortgage)