The notion of having an enticement rate to lure borrowers in, which steps up sharply two to three years later irrespective of where market rates are at the time, has not been a part of our financial landscape.
For example, the Federal Reserve reports that median real net household wealth in the U.S. fell 39 percent from 2007 to 2010 to levels last seen in 1992. In 2011, the median real level of US household income dropped to its lowest level since 1995.