A qualitative choice analysis: examining the factors shaping the patterns of mortgage payment irregularities

Abstract

This thesis examines the factors influencing mortgage payment irregularities among individuals. A positive association between higher financial literacy and irregularities challenges the expected results of a negative correlation. While financial education shows potential long-term impacts, home equity loans exhibit stabilization effects that contribute to regular payments. Risk-taking preferences display anticipated connections with irregularities, but financial goal confidence has a surprisingly positive tie to fluctuations in payments. Though improved financial education emerges as a critical implication, the results reveal complex financial decision dynamics, demanding further investigation into the mechanisms driving mortgage behaviors. The limitations of the data sources, measurements, omitted influences, and evolving risk perceptions highlight the need to refine our understanding through continued research on the intricate factors shaping mortgage payment patterns. Ultimately, unraveling these nuances promises major advancements in literacy programs, policies, and lending practices aimed at greater stability across mortgage and economic landscapes.