The article Picking the Right Mortgage

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The article Picking the Right Mortgage: Banks are offering a wider array of home loans. Here’s how to choose the best one for you featured in the wall street journal on July 4^th 2014 and highlights the shifts in the mortgage market in the United States. The article provides an overview of the shift in strategies among creditors towards enhancing accessibility to financing for aspiring homeowners. As a means of attracting investors, major banks and credit facilities have developed new products such as interest only mortgages among other techniques aimed at enhancing the number of mortgage holders in the country. The options provided by financial institutions the country have increased opportunities for first time homeowners or potential homeowners through lower payments (Pindyck, and Rubinfeld 23).

The article provides the various financial options and instruments that can be used by potential homeowners. They include fixed rate mortgages; adjustable rate mortgages interest rate only mortgages, and piggybank loans. The article provides an important source of information for American citizens and other potential investors seeking investments in the underperforming real estate market in the United States. The article indicates the possible recovery of the real estate and mortgage market in the United States after the recent financial crisis that was attributed to the housing market bubble burst (Pindyck, and Rubinfeld 23).

The housing market bubble burst in the United States had a ripple effect, with parts of the global economy still reeling from the effects of the financial crisis (Pindyck, and Rubinfeld 23). The housing market in the United States as indicated in the article could experience slow and sustained growth in coming years as consumers regain confidence with regards to the economy. Additionally, consumers are generally wary of any purchases within the housing market due to associated costs of furnishing mortgages and concerns within the economy with respect to unemployment and slow growth in the United States.

Work Cited

Pindyck, Robert S, and Daniel L. Rubinfeld. Microeconomics. Upper Saddle River, N.J: Pearson Prentice Hall, 2005. Print.