| 来源类型 | Working Paper |
| 规范类型 | 论文 |
| The Wealth Building Home Loan | |
| Stephen D. Oliner; Tobias Peter; Edward J. Pinto | |
| 发表日期 | 2017-12-05 |
| 出版年 | 2017 |
| 语种 | 英语 |
| 摘要 | Editor’s note: This paper has been updated from the original version posted in December 2017. Abstract The Wealth Building Home Loan (WBHL) represents a class of shorter-maturity mortgages that provide a low-risk path to homeownership and wealth accumulation while maximizing buying power. WBHLs are easy-to-understand loans that combine standard mortgage features in a novel way. Importantly, they require little or no downpayment. The WBHLs in the market today are 15- and 20-year loans, some with fixed rates and others structured as adjustable-rate mortgages (ARMs). We show that a 20-year WBHL can be structured to have monthly payments for many borrowers that are only slightly higher than for the typical FHA 30-year fixed rate mortgage (FRM), due in part to the use of an ARM structure with a low initial rate. Shorter-maturity ARMs carry much less risk of payment shock, and hence are a safer choice, than 30-year ARMs. We also show that the use of 15- and 20-year loans would have greatly reduced the incidence of negative equity during the financial crisis and that the actual default rates on these loans during that period were much lower than for observably equivalent 30-year FRMs. These results highlight that widespread use of WHBLs would have substantial benefits for borrowers, lenders, and the financial system as a whole. Read the full PDF here. |
| 主题 | Housing Center ; Housing Finance |
| 标签 | Financial system ; Housing Center: Initiatives ; Housing Center: Research ; Housing Center: Wealth-Building Home Loan ; Housing finance ; mortgage ; What to Do: Policy Recommendations on Housing |
| URL | https://www.aei.org/research-products/working-paper/the-wealth-building-home-loan/ |
| 来源智库 | American Enterprise Institute (United States) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/207374 |
| 推荐引用方式 GB/T 7714 | Stephen D. Oliner,Tobias Peter,Edward J. Pinto. The Wealth Building Home Loan. 2017. |
| 条目包含的文件 | ||||||
| 文件名称/大小 | 资源类型 | 版本类型 | 开放类型 | 使用许可 | ||
| Wealth_Building_WP.p（790KB） | 智库出版物 | 限制开放 | CC BY-NC-SA | 浏览 | ||
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