Mortgage Choice: A Review of the Literature

Peter M. Basciano, Pamela Z. Jackson, James M. Grayson

Research output: Contribution to journalArticlepeer-review


Although mortgage choice is complex, taking into account various uncertainties, constraints and risks, there has been surprisingly little research conducted from the viewpoint of the homeowner. This paper provides a summary of the literature concerning mortgage choice in five broad categories reflecting the main decisions facing a mortgagor including the mortgage as an investment portfolio decision, the choice between fixed rate and adjustable rate mortgages, the selection of a mortgage term, the option to refinance a mortgage, and deciding between contracted mortgage rate and mortgage point combinations. The review of the literature indicates the importance of an educated consumer, and therefore it is essential that financial research continues to identify and provide guidance on optimal mortgage decisions and that consumers receive appropriate advice to navigate this potential financial hazard. [ABSTRACT FROM AUTHOR]
Original languageEnglish (US)
Pages (from-to)42 - 67
JournalJournal of Personal Finance
Issue number1
StatePublished - 2008


  • MORTGAGE loans, MORTGAGE loan servicing, MORTGAGES, ADJUSTABLE rate mortgages, FIXED interest rates, INTEREST rates, FINANCIAL planning, FINANCIAL management, WEALTH management services, PORTFOLIO management (Investments), FINANCIAL services industry


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