Subprime Mortgages and the boom of Subprime Refinance

As I told you about subprime mortgage in many past of my blog. Now I will tell you about history of Subprime Mortgages and the boom of Subprime Refinance. Now let start, There are more than 19,000 mortgage companies in the United States and some of the largest and best known of them specialize in subprime mortgage lending.

Steven Frank, Senior Vice President of Marketing Flexpoint Fund defines subprime borrowers "Fico someone with less than 620th He or she pays 1.5% and 2% higher interest on the mortgage, but there is no shortage of money or the will , The creditors subprime mortgage market. "

What trends do you see in the subprime mortgage market for 2006 and beyond?

Steve: We have the largest subprime refinancing boom in history from the mid-2002 until September 2005. In less than 80% of Americans to refinance their subprime homes loan during this period. Interest rates for adjustable loans decreased to less than 4% on the highway with some homeowners for fixed prices as low as 5%.

Now both fixed and adjustable back about 6.5% and is likely to reach 7% for the class of 30-year fixed-rate mortgages and 9% of subprime mortgages in late 2006. Deal with a normal rate of 6% - 12% per year. The typical home in most parts of the country remains on the market over six months, which means that it is a balanced market in favor of either buyer or seller.

What do you recommend for the mortgage borrowers, subprime?

Steve: Most subprime borrowers will not stand for a second mortgage or home. They refinance their first mortgage, if they want to collect a portion of their shares. Depending on their personal situation, the owner can take up to 95% LTV (in the cost of credit). Probably it will be within 75% -85% range. There is very little more than 125% LTV subprime mortgages, and borrowers is not for them.

Subprime borrowers should work with a company that understands their needs, someone who understands more about his past problems, which specializes in flexible, affordable mortgage solutions.

Subprime Mortgage Refinancing Tips

Check your credit file - As government loan agency, Freddie Mac, the 15% of subprime borrowers have credit accounts that are for conventional loans. No closer to subprime rates, if the Prime Rate mortgage refinancing.

See your costs - Interest rates vary little between the sub-prime mortgages, but there are some aspects of the loan, the impact on the bottom line, for example:
- The term of the mortgage term, 10, 15 or 30 years
- Is it a fixed or adjustable rate in the amount of credit --
- If items must be paid ( "point" is equal to one percent of the loan amount)
- What payment and closing costs

Find a good customer - a strong lender to borrowers on foot through the application process for verifying the identity and ensure that all conditions for the loan are included. The lender will also recommend whether to block the rate at the time of treatment, or let Floating rate before the closing date.

Source from: subprime refinance