What is a subprime loan?

Did you know that homeowners with subprime mortgages are 15 times more likely to face foreclosure than those with traditional loans? It makes some ask... what is a subprime loan and how did I end up with it?

It is a type of loan that brokers put people in that would not normally qualify for an "A" type loan. Many times this is because they have deflated credit scores and that causes them to slip out of the prime market. What most people don't realize is that these loans are very expensive. They have higher interest rates, higher closing costs, prepayment penalties and higher monthly payments.

It is crazy... take someone that is on the fence to be able to qualify for a mortgage and stick them in a program that is designed to fail.

If you are in this type of a mortgage and need foreclosure help please contact us for a free consultation. We would love to be able to see what other options may be available to you.

Please contact us or leave a comment if you would like some more information on this topic.