R: Fixed versus Adjustable Mortgages

Mortgage {AER} | R Documentation

## 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)

[Package AER version 1.2-5 Index]