Short-term contracts were a staple of the American residential mortgage market until the Great Depression, after which policymakers pushed for longer terms in order to eliminate refinancing risk. Using a first-of-its-kind data set on mortgages outstanding in 1930, this paper suggests that short-term contracts had remained popular until the Depression because of their appeal to a class of well-off sophisticated borrowers who were undeterred by refinancing risk, and who valued flexible amortization. In contrast, typical wage earners preferred longer terms in order to eliminate refinancing risk, even as they took on the burden of regular amortization payments.

在大萧条之前，短期合同一直是美国住宅抵押贷款市场的主要内容，之后，决策者要求延长期限以消除再融资风险。本文使用1930年未偿抵押贷款的首个数据集，表明短期合同在大萧条之前一直很受欢迎，因为它们吸引了一类富裕且经验丰富的借款人，这些借款人不受风险再融资的困扰以及重视灵活摊销的人。相比之下，典型的工薪族更愿意选择较长的期限，以消除再融资风险，即使他们承担了定期分期付款的负担。