what is the subprime mortgage loan?

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  1. Reply
    Rebecca G
    February 15, 2011 at 8:14 pm

    It is a loan for a borrower who does not have good credit history and income. It will generally have a higher interest rate than an “A paper” loan for a borrower with good credit.

  2. Reply
    Gary J
    February 15, 2011 at 8:26 pm

    As answered above, it is a loan typically for people with less than stellar credit. However, because the mortgage company is taking a bigger risk, typically the interest rates and payments are much higher than prime loan. Also beware the ARM (adjustable rate mortgage) I’m a foreclosure prevention counselor and I can’t tell you how many people I am speaking to becuase they are in trouble due to an ARM and the payments have continued to go up.

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