Second Mortgage

What you need to know about bad credit mortgage lending?

Bad credit mortgages, or sub-prime mortgage loans, are not that different from your traditional mortgage. All mortgages have interest rates, fees, and often discount and origination points. You can compare sub-prime mortgages on the Internet and these loans follow market trends just like any other mortgage.

The difference is that sub-prime mortgages cater to homebuyers with less than desirable credit. Here is what you need to know about bad credit or sub-prime mortgage loans. Read the rest of this entry »

Which ones should you avoid?

There are many out there, mostly called loan sharks! Banks and the big-name mortgage companies are prime lenders. Those other mortgage companies that prey on the helpless are subprime and charge inflated interest rates.

Wells Fargo is in the middle between prime and sub prime, as an example. A subprime lender might charge exhorbant interest rates and even stoop to posting your payments a day or two late just to get an added interest charge. If you can, stay away from them. Read the rest of this entry »

Is your subprime second mortgage lender a predatory lender?

Subprime lenders offer financing for people with low credit scores who don’t qualify for a conventional loan. Subprime financing can be offered through traditional mortgage lenders like banks, credit unions, or mortgage lenders. There are also specialized lenders who only deal with subprime mortgages.

Predatory lenders charge high fees, write loans in vague terms, and structure payments so they can foreclose on property. Predatory lenders take advantage of people who do not know their rights in the lending process. Read the rest of this entry »

The differences between a Subprime and Other Lenders

Subprime second mortgage lenders specialize in offering financing to people with poor credit or riskier loans. Conventional lenders focus on low-risk loans and borrowers. While you will find better rates with conventional lenders, suprime companies offer more flexibility in requirements and loan terms.

It is easy to qualify for subprime mortgage loans. Subprime mortgages are easier to qualify for than traditional loans. Since these lenders are willing to accept a higher level of risk, they offer a variety of packages. For example, someone with bad credit can still find a zero-down 30 year mortgage. You may also opt for a lower rate with an ARM or fixed-rate home loan. Read the rest of this entry »