Paying Too Much? Borrower Sophistication and Overpayment in the US Mortgage Market

• 成果类型: Article
• 署名作者: Bhutta, Neil; Fuster, Andreas; Hizmo, Aurel
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia; Swiss Finance Institute (SFI); Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082; 1540-6261
• DOI: 10.1111/jofi.70001
• 发表日期: 2026-02
• 页码: 49-90
• 关键词: price dispersion; search; equilibrium

摘要

Comparing mortgage rates that borrowers obtain to rates that lenders could offer for the same loan, we find that many homeowners significantly overpay for their mortgage, with overpayment varying across borrower types and with market interest rates. Survey data reveal that borrowers' mortgage knowledge and shopping behavior strongly correlate with the rates they secure. We also document substantial variation in how expensive and profitable lenders are, without any evidence that expensive loans are associated with a better borrower experience. Despite many lenders operating in the U.S. mortgage market, limited borrower sophistication may provide lenders with market power.