Adjustable rate mortgages
April 3rd, 2008
A few years ago, homeowner loans were being extended to just about everyone. It wasn’t until recently that the government learned that some of these loans should not have been extended. It brings us to prime and subprime lenders. The subprime lenders would extend loans that the borrower could never repay. The borrower would have an adjustable rate mortgage and the mortgage payment would increase. This increase would be more than the borrower could pay and then the loan would become delinquent and the property would go into foreclosure. Right now, the foreclosures in america is at an all time high.
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