moneyrepair.net - Home
Repair Credit Rating
Money Repair.net Money Repair.net
Free Online Newspaper
Help and Tips
Main categories:
| Credit history | Credit Cards | Loans | Mortgage | Bad credit |
| Student loans | Credit report | Bankruptcy | Credit score |
| Financial books free | Video interview and trainings free |
| Internet online banking | Books |
 >> Navigation: Money Repair.net » Mortgage » Mortgage Basics: What Terms Can You Expect for Subprime Mortgages?  

Mortgage Basics: What Terms Can You Expect for Subprime Mortgages?

Mortgage Basics: What Terms Can You Expect for Subprime Mortgages?
Subprime mortgages are commonly used by those that have negative credit histories in order to purchase a home. If you are getting involved in the subprime mortgage market, here are a few of the terms that you should expect to see.

High Interest

Regardless of what type of subprime mortgage you are going to get, you are going to have to pay high interest rates. High interest rates are synonymous with the subprime mortgage industry because they are taking on additional risk by working with subprime borrowers.

Prepayment Penalties

Many subprime borrowers try to prepay their loans so that they can avoid paying as much interest. However, in many cases, you will have to watch out for prepayment penalties. This is a penalty that you will have to pay if you pay more than a certain amount of the balance of your mortgage within a given year.

Escrow

In the traditional mortgage market, you will typically find escrow on every type of mortgage. This is a type of account that will pay your insurance and taxes for you. With the subprime mortgage market, this type of account is not required in all cases.

Interest-Only

Many subprime mortgages are set up to be interest-only loans. This means that you will only pay the interest every month and then at the end of the loan, you will have to make a balloon payment for the balance.
 (Votes 0)
    Date: Calendar 16-06-2011  Category: Mortgage Comments: comments (0) 

Related News:

{related-news}


Add comment:
Your name: 
E-Mail: 
Enter captcha: 
CAPTCHA: Include security image CAPCHA.
update code


Registration

Login: 
Password: 
 
Registration on site!
Forgot your password?

Books about credit, finance, banks - download free


The Happiness Advantage: The Seven Principles of Positive Psychology That Fuel Success and Performance at Work Book


The Happiness Advantage: The Seven Principles


Conventional wisdom holds that if we work hard we will be more successful, and if we are more successful, then well be happy. If we can just find...

Perfect Personality Profiles Book


Perfect Personality Profiles Book


Penned by a leading expert in the field of psychometrics, this guidebook is vital for anyone who needs to know more about psychometric profiling....

Tags

Balance Transfer, Bankruptcy, Banks, Beat, books, cards, Credit, Credit card, Credit Card Debt, credit cards, Credit Repair, credit report, Credit Score, Credit-cards, debt, Economics books, Finance books, Free Business, Free Business books, How repair bad credit history, Hypothecation, insurance, interest, Intrenet banking, Law, lender, Letter, loan, loans, Market, modification, mortgage, Personal Finance, Personal Finance books, repair, repair credit, report, Sample, secured credit cards

Show all tags

Navigation