@techreport{NBERw5069,
 title = "Debt Usage and Mortgage Choice: Sensitivity to Default Insurance Costs",
 author = "Patric H. Hendershott and William C. LaFayette",
 institution = "National Bureau of Economic Research",
 type = "Working Paper",
 series = "Working Paper Series",
 number = "5069",
 year = "1995",
 month = "March",
 URL = "http://www.nber.org/papers/w5069",
 abstract = {Purchase of a house requires three interrelated household financial decisions: what level of debt to obtain, whether to select an adjustable or fixed rate mortgage (ARM or FRM) and whether to choose an FHA or a conventional loan.  While some have analyzed the mortgage debt decision and the ARM/FRM choice, virtually no one has studied the FHA/conventional mortgage choice or the interrelation among the mortgage debt and instrument decisions.  In our sample of 819 young home purchasers, debt and mortgage choice is driven by a need to finesse the downpayment and payment constraint ratios and to lower mortgage insurance costs.},
}