Skip to content
Business

Business

Finance

Menu

Primary menu

  • business
  • finance
  • insurance
  • money

Subprime Mortgages – Information

Posted on October 10, 2017 by

Undoubtedly, you’ve heard the radio commercial claiming you can get a mortgage despite having bad credit. Bad credit mortgages are better known as subprime mortgages.

Subprime

“Subprime” is a euphemism for a borrower who simply does not qualify for a traditional home mortgage. Subprime loans used to be very difficult to get, but things changed in the 1990’s. Colourbond Roofs Banks began to realize there were a lot of borrowers with less than stellar credit or other problems. More borrowers meant more revenues, so banks started creating subprime mortgages and the game was on. As a result of these new loans, home ownership in the United States has risen to all time highs. Look at Polycarbonate Roofs website for more information.

One of the largest determinants in qualifying for a loan is your credit score. A borrower’s credit history is analyzed using a “FICO” score, named after Fair Isaac and Company, Inc. Typically, a FICO score below 620 is considered an indication of bad credit. The borrower is then classified as a subprime borrower.

Importantly, a FICO score below 620 is not the only reason a person may be classified as subprime. An infrequent borrowing history, new employment position or expensive home may also key the design. In fact, nearly 50 percent of subprime borrowers have FICO scores above 620.

When a lender writes a mortgage, it is betting on whether the borrower will repay the loan completely and in a timely manner. The better your credit score, employment history and so, the better deal you will get from the lender. Obviously, subprime borrowers are not going to get the best deal. Instead, a lender may require a larger down payment and will certainly design a higher interest rate than given to “good” borrowers. In addition, subprime borrowers may have to pay points just to get the loan.

The trade off of all of this, of course, is that you get a loan to buy a home. Home ownership has consistently provided to be one of the best long-term investments in the United States. While Americans are criticized for failing to save money, they are effectively doing so by purchasing homes and building equity in them.

Should you apply for a subprime loan if you have less stellar credit or other problems? There is no right answer, so you should consider sitting down with an independent mortgage broker to analyze your situation.

This entry was posted in money and tagged Accounting, Advertising, Affiliate Marketing, Bad Credit, Bank Loans, Branding, Breaking News, Budget Planning, Business, Business Administration, Business Analyst, Business Articles, Business Card Template, Business Cards, Business Consultant, Business Current Events, Business Development, Business Ethics, Business Finance, Business Idea, Business Ideas, Business Intelligence , Business Law, Business Letter, Business Letters, Business Loans, Business Logo, Business Magazine, Business Management , Business Marketing, Business News, Business News Today, Business Opportunities, Business Partner, Business Plan, Business Plan Template, Business Proposal, Business Solutions, Business Strategy, Business Studies, Business Today, Business Week, Business Week Magazine, Career Development, Carrier Information, Cash Advance, Company , Consulting , Corporate Finance, Credit Check Loans, Credit Management, Dental Insurance, Department Of Finance, E-Business, Economic News Today, Family Business, Finance, Finance Calculator , Finance Degree, Financial Accounting, Financial Advisor , Financial Analysts, Financial Calculator, Financial Consultant, Financial Management, Financial News, Financial News Today, Financial Planning , Financial Services, Flood Insurance , Free Money , Health Insurance, Home Business, How To Make Money , How To Make Money Online , How To Start A Business, International Brand, International Business, International Business News, International Management, Internet Business, Internet Marketing, Leadership , Make Money Online , Management , Marketing, Marketing Consultant, Marketing Strategies , Missing Money , Money , Money Exchange , Money Insurance, Money Management, Money Order , Money Transfer , Mortgages, New Business, New Company, No Credit Check Loans, Online Business, Online Business Cards, Online Business Ideas, Online Business Opportunities, Online Jobs , Online Loans, Online Marketing, Online Payment Services, Opportunity , Payday Loans, Payday Loans Online, Personal Finance , Personal Loans, Personal Money, Public Relations , Sales , Small Business , Small Business Administration, Social Responsibility, Stock Market , Stock Market Futures, Stock Prices , Stockmarket, Stocks , Student Loans, Sustainability, Sustainable Development, Top Business Schools, Unclaimed Money , Unsecured Loans, What Is Business, Work , Work From Home Jobs , World Finance by . Bookmark the permalink.

Post navigation

← Previous Previous post: Money Transfer Companies Fees Compared
Next → Next post: New Business, New Credit Card

Primary Sidebar Widget Area

Recent Posts

  • Currency trading is about risk management 
  • Ways To Protect a Stainless Steel Bearing from Rust
  • Travel Security – Buses and Train Safety
  • Peace of Mind Using Roof Snow Load Measurements
  • 3 Main Reasons Why Digital Marketing Is So Powerful 

Categories

  • Advertising & Marketing
  • Arts & Entertainment
  • Auto & Motor
  • business
  • Business Products & Services
  • clinique chirurgie esthétique paris
  • Clothing & Fashion
  • Employment
  • finance
  • Financial
  • Foods & Culinary
  • Gambling
  • general
  • Health & Fitness
  • Health Care & Medical
  • Home
  • Home Products & Services
  • insurance
  • Internet Services
  • Legal
  • Miscellaneous
  • money
  • Personal Product & Services
  • Pets & Animals
  • Real Estate
  • Relationships
  • Software
  • Sports & Athletics
  • Technology
  • Travel
  • Web Resources
  • Advertise Here
  • Contact Us
  • Disclosure Policy
  • Sitemap

Tags

Career Development Carrier Information Cash Advance Company  Consulting  Corporate Finance Credit Check Loans Credit Management Dental Insurance Department Of Finance E-Business Economic News Today Family Business Finance Finance Calculator  Finance Degree Financial Accounting Financial Advisor  Financial Analysts Financial Calculator Financial Consultant Financial Management Financial News Financial News Today Financial Planning  Financial Services Flood Insurance  Free Money  Health Insurance Home Business How To Make Money Online  How To Make Money  How To Start A Business International Brand International Business International Business News International Management Internet Business Internet Marketing Leadership  Make Money Online  Management  Marketing Marketing Consultant Marketing Strategies 
December 2019
M T W T F S S
« Nov    
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

TL

101cf3b1f27c13d8b53e0dc0f89e111f-332
Copyright © 2019 Business. All Rights Reserved.
Theme: Catch Box by Catch Themes
Scroll Up