Longer mortgage terms favored by risk-averse borrowers, influenced by pricing.
The article looks at why people choose different lengths for their mortgage loans. They studied over 40,000 mortgages in Germany and found that the price of the loan compared to the market average is a big factor. They also found that people who are more afraid of risks or who would be hurt the most by higher interest rates tend to pick longer loan lengths. Lastly, they discovered that mortgage brokers' advice is influenced by how they get paid.