What is a subprime mortgage and how do you know if you have one?

Question

What is a subprime mortgage and how do you know if you have one?

Answer 1

If you are behind on your mortgage payments, then you have a subprime mortgage.

Answer 2

In addition to credit issues, they were used for people with income that could not be verified or self employed who wrote everything off.  They just stated their income...thus dubbed Liar Loans.  Most have a pre-payment penalty & a very high rate.

Answer 3

Subprime mortgages were those granted to borrowers with less than stellar credit and considered risky to the lenders.  They are no different from other mortgages, save that you may have somewhat higher interest rates and terms due to your risky credit status.

Answer 4

Subprime mortgages were a big scam by some banking industry. Some mortgag companies just took the opportunity to get rich by taking business and making their short term earnings very high to cause their stock price to go up so they can sell high to investors.

They know very well it will all collapse someday in the future but then they have already made big money from their insider sales. They sold their stock by setting them up so they sell every quarter pre-announced so no one can charge them with wrong doing or fraud.

They have made it big by using loopholes and deciet. Now, they are rich as a result.

This is what Subprime mortgages is all about. Someone is making big money from these scams.

And no one can do anything about these people who made it big and made alot of money. Same idea when a preacher using his words to get money from followers and build ocean front mansions and enrich their friends and families at the same time using the word of God. Followers are willing to pay them to enjoy life because their God told them it is the right thing to do. That is the same idea behind Subprime mortgages.

I wish I was in the banking business. Now, shareholders of some of these banks are holding nothing but tear drops on their hands.