communication: Till Mortgage Do Us Part: Refinancing Costs and Mortgage Shopping
speaker: Marianna Brunettispeaker: Rocco Ciciretti
speaker: Ljubica Djordjevic
abstract: We show that the mortgage refinancing costs, which serve as a “lock-in” for mortgage holders, play an important role for mortgage shopping. Using a unique household panel dataset that enables us to infer individual bank switching, in conjunction with a legal reform that exogenously slashed down the refinancing costs, we find that the households responded to this change by increasingly shopping both for a mortgage (switching to take out a mortgage), and with a mortgage (switching to refinance an existing loan). Dissecting these results, we show that the effect of the reform was not uniform across households, with more educated individuals and those residing in less competitive markets being at the forefront of the wave of mortgage shopping.
timetable:
Thu 28 Jan, 17:30 - 19:00, Aula Bianchi Scienze
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