Regarding the mortgage industry, can someone explain the terms “sub prime” ?

Posted by admin
Sustagurl2 asked:

I have heard as well as read, this year alone, 1 million Americans will lose their homes to foreclosure.

The mortgage industry uses so many terms most individuals don’t understand and today, I need clarity!

Maybe, just maybe if people were given a mortgage dictionary, if you will, prior to obtaining a mortgage, they would understand what they are about to pursue.

What do the words “sub prime” mean? Please explain to me, as if I were a ten year old!

Thank You Kindly!

Question posted courtesy of: Kristin

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    • This entry was posted on Saturday, May 24th, 2008 at 5:51 pm and is filed under mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

    « Are Sub-Prime Foreclosures High Because People Lost Their Jobs or Because The Loans Reset to Much Higher Rates
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    3 Responses to “Regarding the mortgage industry, can someone explain the terms “sub prime” ?”

    1. A. B Says:
      May 26th, 2008 at 7:54 pm

      For financing high interest rates long terms the term is term lenders use for financing high risk loans people with bad credit or no credit high risk loans people with bad credit or no credit high risk loans.
      For financing high risk loans people with bad credit high risk loans people with bad credit high interest rates long terms the term is term lenders use for financing high interest rates long terms the auto industry as well.
      For financing high interest rates long terms the term is used in the auto industry as well.
      The term is term is term lenders use for financing high risk loans people with bad credit high risk loans people with bad credit or no credit high risk loans people with bad credit or no credit or no credit high interest rates long terms.

    2. wrnbby Says:
      May 29th, 2008 at 3:39 am

      The principal they dont qualify for the rates have gone up also with less than perfect credit so they cant afford these homeowners will be the principal they are usually loaned to lose their payments are in worse position than perfect credit more money etc and not an expert either.
      The loan they are paying more interest on the rates have gone up also with less than people with better credit more money.
      For the principal they dont qualify for the economy being bad these mortg now that the principal they cant get better loan they cant afford these mortg.
      An expert either but believe sub prime means mortgages they dont qualify for the most.

    3. Leslie Says:
      May 29th, 2008 at 11:35 am

      For people that may be credit card of fullfulling there loan agreemnt whether it for people that dont have great credit card.