What is a subprime mortgage ? November 8, 2007Posted by Rambling Man in General Bloggery, World Affairs.
Tags: chicago, Subprime mortgage
Sub-prime mortgage is a term we have started to hear with alarming regularity and terrible financial consequences over the past few months, as the US is gripped (really ?) by its ill effects. Stories of repossession and over inflated credit prices come hand in hand …
So just what is a sub-prime mortgage ? It was a term I was not familiar with until I
looked it up Googled it.
The lovely Constance Barrera, a mortgage broker from Chicago, defines it thus
A sub-prime mortgage is one granted to a borrower considered sub-prime , that is, a person with a less-than-perfect credit report. Sub-prime borrowers have either missed payments on a debt or have been late with payments. Lenders charge a higher interest rate to compensate for potential losses from customers who may run into trouble or default.
Sub-prime mortgages – so now you know !