Beverly Hills, CA (PressExposure) May 19, 2008 -- A new After The Noise publication provides homeowners with a plan for protecting against foreclosure or the financial pain inflicted by adjustable-rate mortgages.
A Mortgage Liberator Guidebook: How to pay your bills as interest rates change was researched and developed by Douglas Glenn Clark years before the subprime loan crisis became the cause of a record number of foreclosures. The purpose was to find a method that taught homeowners how to risk small sums of money in interest rate changes as they developed a new income stream to pay down debt.
"If you read or listened to financial experts like Warren Buffett or Jim Sinclair, you realized that something bad might be coming as a result of over-the-counter derivative investments. Then a family member got involved in a complicated adjustable-rate mortgage. I feared rising interest rates would cause real harm," he said. . Americans have been sold on the idea of owning their own home. Unfortunately, for many people, owning a home becomes a liability, not an investment. Even celebrity athletes like Jose Canseco (MLB) and Latrell Sprewell (NBA) have lost homes this year to foreclosure.
Clark believes that owning a home is like owning a business: You must learn to reckon with a changing economy to protect your most important asset. The U.S. Treasury bond options market is ideal because it is a global economic indicator that is highly sensitive to interest-rate changes.
The methods revealed in the picture-book-style A Mortgage Liberator Guidebook may not be appropriate for everyone. There is risk of loss when trading any financial market. But Americans who began watching interest rates when first looking for a home to buy cannot afford to take their eye off the ball once they become owners. Knowledge of U.S. Treasury bond movements can help hedge future costs.