1. “Fed Chief Questions Loan Choices. Greenspan says certainty of fixed-rate mortgages may not be worth cost. In a rare evaluation of the interest rate options that households face, Federal Reserve Chairman Alan Greenspan questioned whether American homeowners are well- served by popular fixed-rate mortgages.” Leveraging Home Equity to Create Wealth, Steven Marshall. Copyright © 2004 Steven Marshall. Published by Steven Marshall, Bellevue Mutual Mortgage, Bellevue WA.”

2. Libor Graph Leveraging Home Equity to Create Wealth, Steven Marshall. Copyright © 2004 Steven Marshall. Published by Steven Marshall, Bellevue Mutual Mortgage, Bellevue WA.”

3. The History of US Interest Rates Leveraging Home Equity to Create Wealth, Steven Marshall. Copyright © 2004 Steven Marshall. Published by Steven Marshall, Bellevue Mutual Mortgage, Bellevue WA.”

4. 30 Year Fixed vs. Cash Flow ARM Mortgage Balance 30 Yr Fixed 6.25% Cash Flow 3.25% Monthly Savings $300,000 $1847$813 $1034 $400,000 $2463$1083 $1380 $500,000$3078$1354 $1724 $1,000,000 $6157$2708 $3449 $1,500,000$9235$4063$5172 Leveraging Home Equity to Create Wealth, Steven Marshall. Copyright © 2004 Steven Marshall. Published by Steven Marshall, Bellevue Mutual Mortgage, Bellevue WA.”

5. Cash Flow ARM Effective Payment Mortgage Balance Cash Flow 3.25% Tax Savings 35% Bracket Effective Payment $300,000 $813 $285 $528 $400,000 $1083$379 $704 $500,000 $1354$474 $880 $1,000,000 $2708$948$1760 $1,500,000 $4063$1422$2641 Leveraging Home Equity to Create Wealth, Steven Marshall. Copyright © 2004 Steven Marshall. Published by Steven Marshall, Bellevue Mutual Mortgage, Bellevue WA.”

6. Why Does The Fed Lower Or Raise Rates? n The Fed is trying to maintain a “healthy” economy. If the economy is “very slow” the Fed might decide to lower interest rates that will in turn make money available to businesses, home buyers and consumers. n If the economy is “heating up” and in the opinion of the Fed – growing too quickly, they will raise interest rates to “slow things down.” n The Fed watches trends in: housing, inflation, wages, employment, business investments, consumer spending, and foreign economic issues. Leveraging Home Equity to Create Wealth, Steven Marshall. Copyright © 2004 Steven Marshall. Published by Steven Marshall, Bellevue Mutual Mortgage, Bellevue WA.”