Mortgage Guide

Chuck S asked:

I live in a neighborhood with many sub prime homes and in my opinion are low class people. They have moved in and the once great school system is already struggling. Now I hear the government talking about letting them stay and fixing their mistake and actually offering a better deal than people who were responsible have gotten.

Why do we reward the losers and punish the responsible people in this country?

Question posted courtesy of: Lois

mrclam1212 asked:

Lets assume that you were denied for cashflow concerns or poor credit and that you had roughly 50K in equity in the home and you needed a loan for around 5-10K. In addition what type of rates would these alternatives charge? The reason I ask is bc I understand that sub prime lenders denied loan applicants at a higher rate (deny a larger % of applicants) than prime lenders.

Question posted courtesy of: Jon

Annette W asked:

Can someone please tell me how sub prime lending and the recent crisis was effected by the implementation of Basel II
thanks

Question posted courtesy of: Louis

Neatest Inbox Holder asked:

Is the whole of Real estate business in US is hit by Sub prime crash? It seems, the onset of this phenomenon is almost sudden . Is any other sector like this is still ticking to be blown off?

Question posted courtesy of: Troy

David L asked:

There is a bill in the works that would freeze a persons sub prime mortgage at the rate it was before it is adjusted.

Does anyone have more detials on this? Does anyone know when this might pass?

Question posted courtesy of: Andre

fiestababy05 asked:

I know there were two major changes to our Prime lending rates. What caused these rates to change???

2007-9-187.75%
2007-10-317.50%

Question posted courtesy of: Courtney

aliveandkicking asked:

I don’t understand how a hedge fund can leverage into a position in low yielding asset and make any money. Where are they getting ultra cheap money?

Question posted courtesy of: Jose

marbogvht asked:

My girlfriend got a loan last year, that was 2 year interest only, for 98,000. She has a little under a year left until she can refinance. What should she expect when the 2 years are up if her credit stays the same, or improves slightly?

Question posted courtesy of: Bessie

Silent Kninja asked:

What are sub-prime loans, anyway? Any advice would be appreciated.

Question posted courtesy of: Francisco

cmsb705 asked:

A home loan with less than 20% down requires PMI (Private Mortgage Insurance). Since most “sub-prime” mortgages would require PMI, why are banks losing so much money on these loans? Shouldn’t it be the insurance companies that lose the money?

Question posted courtesy of: Gladys