Guiding Clients Through the Mortgage Mess

McCarthy, Ed
August 2008
Journal of Financial Planning;Aug2008, Vol. 21 Issue 8, p24
Academic Journal
The article discusses the mortgage industry in 2008 and difficulties which borrowers face regarding mortgages. The impact which adjustable rate mortgages (ARM) had on the mortgage boom and on the housing collapse which occurred in the U.S. is discussed. Advice which financial planners and mortgage lenders are giving clients in 2008 in order to avoid foreclosure is mentioned, such as to get a fixed rate mortgage instead of one with an adjustable rate and to not finance 100% of a loan. The practice of borrowers using their home's equity to finance other investments is discussed.


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