Fixed-rate mortgages are expensive, but adjustable-rate mortgages are volatile — but do they have to be? Kevin Erdmann pitches an alternative that captures the best qualities of both. This is part 9 of our series on misaligned incentives in housing policy.Show notes:<ul><li>Erdmann, K. (2021). <a href='https://www.mercatus.org/research/policy-briefs/suggested-mortgage-amortization-structure-fixed-amortization-adjustable'>A Suggested Mortgage Amortization Structure: Fixed Amortization, Adjustable Principal.</a> Mercatus Center.</li><li>UCLA Housing Voice episode 106: <a href='https://www.lewis.ucla.edu/2026/01/21/106-mortgage-lending-standards-with-kevin-erdmann-incentives-series-pt-8/'>Mortgage Lending Standards with Kevin Erdmann.</a></li></ul>

<description>&lt;p&gt;Fixed-rate mortgages are expensive, but adjustable-rate mortgages are volatile — but do they have to be? Kevin Erdmann pitches an alternative that captures the best qualities of both. This is part 9 of our series on misaligned incentives in housing policy.&lt;/p&gt;&lt;p&gt;&lt;b&gt;Show notes:&lt;/b&gt;&lt;/p&gt;&lt;ul&gt;&lt;li&gt;Erdmann, K. (2021). &lt;a href='https://www.mercatus.org/research/policy-briefs/suggested-mortgage-amortization-structure-fixed-amortization-adjustable'&gt;A Suggested Mortgage Amortization Structure: Fixed Amortization, Adjustable Principal.&lt;/a&gt; Mercatus Center.&lt;/li&gt;&lt;li&gt;UCLA Housing Voice episode 106: &lt;a href='https://www.lewis.ucla.edu/2026/01/21/106-mortgage-lending-standards-with-kevin-erdmann-incentives-series-pt-8/'&gt;Mortgage Lending Standards with Kevin Erdmann.&lt;/a&gt;&lt;/li&gt;&lt;/ul&gt;</description>

Fixed-rate mortgages are expensive, but adjustable-rate mortgages are volatile — but do they have to be? Kevin Erdmann pitches an alternative that captures the best qualities of both. This is part 9 of our series on misaligned incentives in housing policy. Show notes: Erdmann, K. (2021). A Suggested Mortgage Amortization Structure: Fixed Amortization, Adjustable Principal. Mercatus Center.UCLA Housing Voice episode 106: Mortgage Lending Standards with Kevin Erdmann.

UCLA Housing Voice

Ep. 107: A Better Mortgage with Kevin Erdmann (Incentives Series pt. 9)

Ep. 107: A Better Mortgage with Kevin Erdmann (Incentives Series pt. 9)

Description