The Marginal Effect of First-Time Homebuyer Status on Mortgage Default and Prepayment

Patrabansh, Saty

doi:10.2139/ssrn.2628835

Cited by 2 publications

(2 citation statements)

References 32 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The properties they purchase are usually less costly than the properties purchased by repeat buyers (Patrabansh (2013)). Research has found these differences in borrower characteristics to be good explanations for the differences in the default probabilities between first-time and repeat homebuyers (Patrabansh (2015)).…”

Section: First-time Homebuyersmentioning

confidence: 99%

“…3 They also include the creation of a variety of free financial coaching programs 4 to strengthen FTHBs' skills in assessing their own abilities to make mortgage payments as well as of programs that provide FTHBs with access to better mortgage terms. 5 Though extensive research has been conducted on FTHB mortgage choices and consequences related to these policy maneuvers (Heath and Soll, 1996;Tong, 2005;Cheema and Soman, 2006;Rohe, 2006, 2011;Baker, 2012;Collins, Loibl, Moulton, and Samak, 2013;Dynan, Gayer, and Plotkin, 2013;Harris, Steuerle, and Eng, 2013;Patrabansh, 2013Patrabansh, , 2015, little has been done on FTHBs and their real estate transaction outcomes. In particular, the lack of data has resulted in little empirical research.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Under What Circumstances do First-time Homebuyers Overpay? — An Empirical Analysis Using Mortgage and Appraisal Data

Shui

Murthy

2019

Journal of Real Estate Research

View full text Add to dashboard Cite

We study whether first-time homebuyers overpay for their homes and whether the magnitude of overpayment varies with the diligence of appraisers involved. We present a robust result that first-time homebuyers sort into smaller and cheaper houses, but that once observed and unobserved house characteristics are controlled for, they pay a premium compared to their more experienced counterparts. Our analysis additionally suggests that certain appraisals and appraisers might be able to mitigate this overpayment by inducing downward renegotiation. This research is among the first to contribute both theoretically and empirically to the literature on first-time homebuyers' sales transactions.

show abstract

Section: First-time Homebuyersmentioning

confidence: 99%