Journal Article

Asset Diversification and Low Debt Are the Keys to Building and Maintaining Wealth

Abstract: Greatly expanded access to home mortgages during the 1980s, 1990s, and 2000s appeared to make the American dream a reality for millions of families. Homeownership was attainable by many who, for the first time, were able to take out a mortgage with an extremely low or no down payment ? even if they had a blemished credit history or none at all. For those with access to their accumulated home equity through mortgage refinancing or other home-secured borrowing, as well as to other sources of credit, lack of available cash no longer meant that they had to delay making routine purchases, buying a new car, starting a home renovation project, or pursuing the dream of college for a family member.

Keywords: Mortgage debt; wealth building; savings accounts; household debt;

Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Cascade

Publication Date: 2014-01

Volume: 1

Order Number: 84