Mortgage: Fixed versus Adjustable Mortgages

Description

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

Usage

data("Mortgage")

Arguments

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.

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.

Examples

Run this code

# NOT RUN {
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)
# }