chap 10 e - Characteristics of an Adjustable-Rate Mortgage...

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Characteristics of an Adjustable-Rate Mortgage Subprime mortgage crisis Mortgage loans to borrowers who do not have sufficient income or down payments to qualify for prime mortgages As interest rates increased in 2006, some home buyers could no longer afford their payments Housing and Economic Recovery Act of 2008 allowed some homeowners to avoid foreclosure Decision to Own a Home versus Rent Consider financial assessment before considering personal preferences Estimating the total cost of renting and owning Renting–rent payment, security deposit Owning–down payment, mortgage payment, closing costs, maintenance, taxes and insurance Owning also has tax advantages Financial Planning Online: Should You Rent or Buy? Go to: http://realestate.yahoo.com/calculators/rent_vs_own.html This Web site provides a recommendation on whether you would buy a home, based on your rent versus the expenses of the home you are considering
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This note was uploaded on 02/22/2012 for the course FINANCE 250 taught by Professor Maryevans during the Spring '12 term at Rutgers.

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