Mortgages For Dummies, 2nd Edition As a homeowner with an expensive subprime mortgage loan you signed on for, you may have actually qualified for a prime mortgage with much lower interest rates. Subprime loans are usually designed for borrowers with damaged or sketchy credit histories. Lenders charge higher rates to these customers to offset the extra risks they take on. Prime loans are usually granted to borrowers with credit scores of 650 or higher. Freddie Mac, a government-sponsored mortgage-loan buyer, estimated that borrowers of 15 to 35 percent of all subprime loans it bought in 2005 could have qualified for prime-rate loans.

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