Date of Award:


Document Type:


Degree Name:

Master of Science (MS)


Human Development and Family Studies

Committee Chair(s)

Yoon Lee


Yoon Lee


Ryan Seedall


Lucy Delgadillo


Homeownership is a way for families to build wealth and marks status attainment. Despite the many benefits of homeownership, homeowners who are delinquent on their mortgages lose the effective means of wealth accumulation and may trigger the beginning of the foreclosure process. There is evidence that homeowners with appropriate levels of financial literacy have a lower likelihood of mortgage delinquency.

Using data from the 2018 National Financial Capability Study (NFCS), the main purpose of this study was to examine what factors are associated with mortgage delinquency among homeowners. This study also examined to what extent financial literacy plays a role in mortgage delinquency among homeowners. The findings of this study suggest that financial literacy, some personal/other factors, and socio-economic characteristics are important factors associated with mortgage delinquency. In particular, financial literacy such as budgeting ability and setting up an emergency fund were important skills that could help homeowners pay their mortgages on time. The findings of this study can help financial educators, financial counselors, and policy makers understand the role of financial literacy in mortgage delinquency and could help homeowners keep their homes and reduce the risk of foreclosure.