What does "sub prime" mean in reference to a home loan?
Answers: 1) Credit with higher risk characteristics, such as bankruptcy or collection accounts
2)A term referring to borrowers with a less-than-perfect credit history, also called B&C credit.
3) Industry term used to describe credit and loan products that have less than stringent lending and underwriting terms and conditions. As a result of the higher risk, subprime products charge a higher rate of interest.
www.amdreammortgage.com/glossary.php
Mostly predator loans.
They were given to persons with bad credit or persons that
couldn't prove their income.
They usually received a interest high as the sky. Which in turn caused them to have a very large loan payment. So when their budget hiccuped or someone got sick, they couldn't make their'
payments.
A lot of loan officers looked the other way and or lied for the borrowers in order for them to make money.
Underwriters had to be in on this also. Now most of them are seeking other sources of income...(no busy) ha!
This has been going on for a while. It started in and around Michigan, Ohio and spand out.
It means giving a loan to someone that shouldn't be getting one in the first place... Just look at the City of Baltimore
I am closing on a home end of March and interest rates are low today, should I lock in or wait?
Answers: Interest rates are not fluctuating radically now but watch them daily and try to lock in on the dip.
How low is what they are quoting you?
What are your points?
What are your Fico scores?
Test the waters with other loan officers and banks.(chuckle)
they are hungry now :)
Should I invest surrounded by Real State?
Should I invest in Real State or do you guys mull over prices aregonna keep falling?
Answers: I just buy fake states...they are cheaper and pretty much do like peas in a pod thing.
Yes it's a perfect day surrounded by Real Estate..(always)
Unless you are a current sub-prime home owner!
And perfect for investors.
But mind you, they are going to ask for a chunk of money down, if you hold less than shiny credit.
People next to 720 upwards should not have too much to verbs about.
they still own loans for 500 fico scores.(chuckle) beside 50% down.
It will be a buyer's market for several more months but at some point it will stabilize and prices will get going to appreciate again. Your local market may or may not be going through the crunch you hear give or take a few on the news. Watch you bazaar closely over the next few weeks and carry a handle on what have gone on there for the finishing 6 months. That will be an indicator of what is currently going on. With rates coming down and spring coming the market will start to turn the other style at some point. But not all market are the same at adjectives. Good Luck!