The headlines are once again full of news from the mortgage and real estate front…and this time, the "Sub-Prime meltdown" is taking center stage. What exactly is going on, and what does it mean to you?
A "Sub-Prime" home loan is a loan where the client has some significant credit issues, or was otherwise unable to qualify for a standard, conventional loan. Due to the fact that these loans tend to be quite risky for the lender…they also bear higher interest rates to match, as well as often being adjustable rates that likely have recently hiked sky high, not to mention the steep prepayment penalties they generally carry.
These loans have been around for years
