Leaving Money on the Kitchen Table: Exploring Sluggish Mortgage Refinancing Using Administrative Data, Surveys, and Field Experiments

Refinancing a mortgage is an important, complicated decision. We examine offers reducing payments $204 monthly on average, at little cost. Administrative data from about 800,000 borrowers shows that more than 50% do not refinance. Surveys and three field experiments show this costly mistake is related to suspicion and time preferences.



Citation:

Eric Johnson, Stephan Meier, and Olivier Toubia (2016) ,"Leaving Money on the Kitchen Table: Exploring Sluggish Mortgage Refinancing Using Administrative Data, Surveys, and Field Experiments", in NA - Advances in Consumer Research Volume 44, eds. Page Moreau, Stefano Puntoni, and , Duluth, MN : Association for Consumer Research, Pages: 179-184.

Authors

Eric Johnson, Columbia University, USA
Stephan Meier, Columbia University, USA
Olivier Toubia, Columbia University, USA



Volume

NA - Advances in Consumer Research Volume 44 | 2016



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