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Locus of control and home mortgage loan behaviour
Author(s) -
Wang Mingji,
Chen Hong,
Wang Lei
Publication year - 2008
Publication title -
international journal of psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.75
H-Index - 62
eISSN - 1464-066X
pISSN - 0020-7594
DOI - 10.1080/00207590801888760
Subject(s) - loan to value ratio , loan , mortgage insurance , shared appreciation mortgage , mortgage underwriting , collateralized mortgage obligation , locus of control , business , secondary mortgage market , control (management) , mortgage loan , finance , actuarial science , psychology , economics , social psychology , casualty insurance , insurance policy , management
The present study investigated the impact of locus of control on home mortgage loan behaviours. The results showed that participants with stronger external control were more likely to purchase a lower priced home, have a lower ratio of mortgage loan amount to the total home value, and have a shorter term of mortgage loan. Moreover, among participants who have owned a home, those not using mortgage loans showed more external control than those using mortgage loans; among participants who have not owned a home but want to buy a home, those not planning to use mortgage loans showed more external control than those planning to use mortgage loans.