3.13.2007

What's a subprime loan?

Wiki: Subprime


Risky mortgage practices:


  1. 40 year mortgages
  2. Jumbo mortgages
  3. Zero (or very low) down mortgages
  4. "Liar Loans" .... where there is no proof of income
  5. Interest only loans
  6. ARM (adjustable rate mortgages). Risk is that as rates rise, incomes may not rise, and buyer may default!


United States housing bubble

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