What was the major reason sub-prime borrowers defaulted in the recent mortgage meltdown?
Does anyone know a source that will show what the major reason was for default by sub-prime borrowers beginning in 2007? For example, was it that their interest rates increased dramatically (which can happen on an adjustable rate mortgages in which its
The advertising and marketing materials for those loans were very misleading at best and fraudulent at worst.
Those loans were very profitable for the Banks that sold them
The loan officers that worked for the banks were paid
No it was lack of comprehension of just what buyers owed and how to pay for it. They bought homes, kept refinancing to pull out equity for other expenses. The jeopardize their homes by using them as piggy banks. It has been published in every financial
The 30/15-year adjustable loans rose 0.8%. The average costs for the 1 and 5 year adjustable rate were up 0.6 and 0.5%. Keeping track of mortgage rates is Freddie Mac. Surveying lenders across the country each week. The average rate on a 5-year
Our Adjustable rate mortgage is about to “adjust”. Unfortunately home values have plummeted contained by our area. We want to refinance to a fixed rate loan but wonder if it's possible when our current loan balance is more than what our house would be