Abstract: The demographic characteristics of recent adjustable and fixed-rate mortgage borrowers are compared among nationally representative survey cross-sectional data at three-year intervals from 1989 through 2001. While the overall proportion of ARMs in relation to FRMs has decreased, a trend toward increased use of adjustable-rate mortgages among lower income, less wealthy, less credit worthy, and single-headed households appears over this 13-year period. Findings from this study point to the need for targeted financial education to ensure that vulnerable households are making rational consumer decisions with full information regarding interest rate risk associated with adjustable-rate mortgage products. Keywords: Mortgage loans, adjustable-rate mortgages, mortgage trends

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