Saltar al contenido principal
logo

2015 Conference

del 15 al 16 de October del 2015

Orlando, FL

Welcome to the AFS Conference 2015 Schedule App. Please use the search features to see when your session or poster has been scheduled to take place. 

After the Great Recession: Financial Sophistication and Housing Leverage among Middle-aged Households

jueves, el 15 de octubre de 2015 a las 14:05–15:35 EDT
3-Senate
Keywords: 5 words maximum

Great Recession; financial sophistication; mortgage; housing leverage; Survey of Consumer Finances (SCF)

Very short description for use in the program to help attendees understand more than a title can describe

U.S. households face various choices in saving for retirement, with one of the most common decisions related to maintaining or paying off a mortgage. Using the 2010 and 2013 Survey of Consumer Finances datasets, this study investigates the relationship among middle age households between financial sophistication and having an outstanding mortgage balance and the relationship between financial sophistication and loan-to-value (LTV) ratios. Results from Heckman selection model indicate that financial sophistication was positively associated with higher LTV ratios as well as an outstanding mortgage balance, implying that financially sophisticated households may be actively using leverage to increase asset returns.

Lead & Corresponding Author

Kyoung Tae Kim, PhD, The University of Alabama
Job Title

Assistant Professor

Additional Authors

Martin Seay, Ph.D., Kansas State University
Job Title

Assistant Professor

Hyrum Smith, Virginia Tech
Job Title

Assistant Professor

Cargando…