Advanced Search

Volume 18 - Number 1

January 10, 2014

Economics Drive Low-Rated Borrowers to ARMs

The tendency of borrowers with low credit scores to choose adjustable-rate mortgages over fixed-rate loans is more about economic considerations rather than a lack of financial sophistication, according to a study by Federal Reserve researchers. In the study, Fred Furlong, David Lang and Yelena Takhtamanova looked at factors that influenced lower-credit borrowers to select ARMs over fixed-rate mortgages during the housing boom in early 2000. In general, the research team observed ...

Subscribers to Inside Mortgage Trends have full access to all its stories and data online. Visitors may become subscribers for full access or may purchase individual articles and data.

Subscriber Log In

If you are a current subscriber or already purchased this article, please login below.

Forgot your password?

Already subscribe but haven't registered for all the benefits of the website?


This unique biweekly publication focuses exclusively on the dynamics of the mortgage market and improving your bottom line: earning profits in the mortgage business.



You can purchase this article for $55.00 without subscribing and always have access to it on

Pay Per View

Please contact Customer Service if you need assistance: 1-800-570-5744


In 2016, what have you been paying your retail residential loan officers, on average, as a commission?

25 to 50 basis points per loan
51 to 75 bps
76 to 100 bps
101 to 150 bps
More than 150 bps
We’re a call center lender and don’t disclose that data point.

vote to see results
Housing Pulse