Fixedrateconventionalmortgageswere

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Unformatted text preview: s take market risk. Fixed rate (conventional) mortgages were Lenders offer numerous mortgage products, used to finance homes, lender assumed many are risky and borrower assumes interest rate risk. Only qualified borrowers interest rate risk on adjustable rate were given loans. mortgages (ARMs). Lenders encouraged homeowners to borrow on their home equity. Lenders made loans to consumers who could not afford to repay, though standards are Consumers paid cash or used lay away plans. Consumers use credit cards, carry big tighter no balances and pay high interest rates/fees. Employers provided and paid most of Health care costs are escalating, and employee health care costs. employers push more costs to the employee, or do not provide health insurance. 8 Major Trends: More Personal Responsibility for Your Future Emphasis on the Emphasis Individual Taking Individual Responsibility for Their Financial Future Future Why would this be the case? 9 Major Trends: U.S. Government Entitlement Programs The government will not likely be able The to afford to pay you the same benefits as your parents Historic shift in government outlays to the Historic retiring “baby boomers” retiring Social security outflows Medicare outflows State and local government pension State failures failures Military pensions and medical care 10 Other Trends In Personal Finance Complex Tax Laws and Saving Complex Initiatives Initiatives 401-K plans 529 college savings plans 529 A Growing Financial Services Industry Offering complex and risky products co...
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This document was uploaded on 02/12/2014.

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