SUB PRIME MORTGAGE

A sub prime mortgage is the name given to a mortgage that does not meet conventional (or Fannie Mae) guidelines usually due to a borrowers negative credit rating.  Traditionally, the rates and fees on these loans are much higher, but the upside is that they allow a borrower to obtain a home mortgage and obtain the dream of home ownership and benefit from tax savings associated with home ownership.

Sub prime mortgages are often obtained through brokers, although some direct lender (i.e. banks) do offer them.  There has been lots of controversy surrounding sub prime mortages because many borrowers that do not qualify for traditional conventional mortgages have been take advantage of by unethical lenders that offer sub prime loan products.

These loans also very often have stipulations that other loans do not have, such as a pre-payment penalty, which means you cannot replace the loan for a certain fixed period of time.  This is to ensure profit by the lender.

Our philosophy is that we want to do whatever we can to help our customers regardless of credit history to help them get the best rate and terms on thier mortgage.

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