Subprime Loans- Mortgage.info
MORTGAGE.INFO LENDER HOTLINE: 888-581-5008 What is a subprime mortgage? A subprime mortgage is made for individuals who may have poor credit or no credit whatsoever. With a conventional loan a lender with a poor credit history might not qualify, or be approved. A subprime program removes this challenge for the borrower. However, subprimes mortgages tend to have slightly higher interest rates than a normal prime lending rate. Also there are usually higher down and closing costs due to the added risk of a low credit score borrower. Types of Subprime Loans Subprime mortgages have many different mortgage structure available. The most common Subprime mortgage is an adjustable rate mortgage. ARMs allow the borrower to choose how much they would like to pay each month. This can be useful if you are unable to make the payments in full at the beginning of your loan term. However lower payments will result in a higher principal. So putting off paying your loan can hurt you in this program. Fixed-Interest Mortgage A Fixed-Interest Mortgage is another type of subprime loan. These loans usually have 40-50 year loan terms which is longer than a standard loan period. This lowers the monthly payments making more manageable payment for the borrower, however this is often coupled with higher interest rates. Interest-Only mortgages Interest-Only mortgages allow for the payment toward the principle to be postponed. This means that the borrower is only paying interest on their loan and the payments to the principle are not required for the first term of loan. Dignity Mortgage The newest type of subprime loan is a Dignity Mortgage, this program has a down payment of 10% but pays a higher interest rate for a set period of about 5 years. If all the payments are made on time then the extra interest will go towards the balance of the mortgage and the interest rate is lowered to the prime rates. While the rates are not the most competitive with subprime loans; if you have no or bad credit a subprime loan can help you get into your home. Depending on your situation a subprime loan may be a good option for you. Do your homework and check out your options.
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Subprime Loans- Mortgage.info
- 2. What is a subprime mortgage? A subprime mortgage is made for individuals who may have poor credit or no credit whatsoever. With a conventional loan a lender with a poor credit history might not qualify, or be approved. A subprime program removes this challenge for the borrower. However, subprimes mortgages tend to have slightly higher interest rates than a normal prime lending rate. Also there are usually higher down and closing costs due to the added risk of a low credit score borrower. MORTGAGE.INFO LENDER HOTLINE: 888-581-5008
- 3. Types of Subprime Loans Subprime mortgages have many different mortgage structure available. The most common Subprime mortgage is an adjustable rate mortgage. ARMs allow the borrower to choose how much they would like to pay each month. This can be useful if you are unable to make the payments in full at the beginning of your loan term. However lower payments will result in a higher principal. So putting off paying your loan can hurt you in this program. MORTGAGE.INFO LENDER HOTLINE: 888-581-5008
- 4. Fixed-Interest Mortgage A Fixed-Interest Mortgage is another type of subprime loan. These loans usually have 40-50 year loan terms which is longer than a standard loan period. This lowers the monthly payments making more manageable payment for the borrower, however this is often coupled with higher interest rates. MORTGAGE.INFO LENDER HOTLINE: 888-581-5008
- 5. Interest-Only mortgages Interest-Only mortgages allow for the payment toward the principle to be postponed. This means that the borrower is only paying interest on their loan and the payments to the principle are not required for the first term of loan. MORTGAGE.INFO LENDER HOTLINE: 888-581-5008
- 6. Dignity Mortgage The newest type of subprime loan is a Dignity Mortgage, this program has a down payment of 10% but pays a higher interest rate for a set period of about 5 years. If all the payments are made on time then the extra interest will go towards the balance of the mortgage and the interest rate is lowered to the prime rates. MORTGAGE.INFO LENDER HOTLINE: 888-581-5008
- 7. While the rates are not the most competitive with subprime loans; if you have no or bad credit a subprime loan can help you get into your home. Depending on your situation a subprime loan may be a good option for you. Do your homework and check out your options. MORTGAGE.INFO LENDER HOTLINE: 888-581-5008
- 8. T O L E A R N M O R E MORTGAGE.INFO LENDER HOTLINE: 888-581-5008 C L IC K HE R E MORTGAGE.INFO LENDER HOTLINE: 888-581-5008
- 9. Justin McHood is Americas Mortgage Commentator and has been providing Mortgage commentary for over 10 years. INFORMATION PROVIDED BY: Justin McHood MORTGAGE.INFO MORTGAGE.INFO LENDER HOTLINE: 888-581-5008
- 10. LEARN MORE ABOUT MORTGAGE.INFO: MORTGAGE.INFO _MORTGAGEINFO FACEBOOK.COM/WWW.MORTGAGE.INFO LENDER HOTLINE: 888-581-5008 PINTEREST.COM/MORTGAGE_INFO MORTGAGE.INFO LENDER HOTLINE: 888-581-5008