What's all this talk about "Sub-Prime"?
Simply put......Sub-Prime – higher interest rates available for people with less than stellar credit, who may be more likely to default
*Alt-A (good credit, but little or no documentation of income)
*Interest Only
*Adjustable Rate
Who are Fannie Mae and Freddie Mac?
They are Government sponsored enterprises that buy mortgages, then packages and sells them on the secondary financial market
A little bit about foreclosures and adjustable rate mortgages....
FHA (Federal Housing Administration) Secure – is trying to help prevent foreclosure among homeowners whose adjustable rates went up and they fell behind. These homeowners will be able to refinance under FHA to get a fixed rate (FHA insures mortgages made by lenders, does not lend money) End of 2008 is the deadline to refinance under FHA Secure.
A look into why this is happening.....People were putting little or no money down and the lenders saw rising home prices and didn’t worry about defaults
Facing Foreclosure? Call......888.995.HOPE
Simply put......Sub-Prime – higher interest rates available for people with less than stellar credit, who may be more likely to default
*Alt-A (good credit, but little or no documentation of income)
*Interest Only
*Adjustable Rate
Who are Fannie Mae and Freddie Mac?
They are Government sponsored enterprises that buy mortgages, then packages and sells them on the secondary financial market
A little bit about foreclosures and adjustable rate mortgages....
FHA (Federal Housing Administration) Secure – is trying to help prevent foreclosure among homeowners whose adjustable rates went up and they fell behind. These homeowners will be able to refinance under FHA to get a fixed rate (FHA insures mortgages made by lenders, does not lend money) End of 2008 is the deadline to refinance under FHA Secure.
A look into why this is happening.....People were putting little or no money down and the lenders saw rising home prices and didn’t worry about defaults
Facing Foreclosure? Call......888.995.HOPE
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