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What Clients Ask The Most
What You Should Know
What is a sub-prime mortgage?
A sub-prime mortgage is a type of home loan offered to borrowers who have lower credit scores or other financial risk factors that make them less likely to qualify for a standard (prime) mortgage. Because lenders are taking on more risk, these loans often come with higher interest rates, fees, or stricter terms than conventional loans.
Example:
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Borrower has a 580 credit score and wants to buy a $250,000 home.
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A conventional loan might be denied.
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A sub-prime lender could approve a loan with a higher interest rate and larger down payment.
When should I refinance?
When interest rates are lower, when you want to shorten your loan term, when you want to switch loan type, to access Home Equity (Cash-Out Refinance), or when your credit or financial situation has improved.
Should I get a fixed rate or adjustable rate loan?
Choosing between a fixed-rate and an adjustable-rate mortgage (ARM) depends on your financial goals, timeline, and risk tolerance. Here’s a clear breakdown to help you weigh your options:
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Fixed-Rate Mortgage is best for people planning to stay in their home for a long time and those who want stability and predictability in payments.
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Adjustable-Rate Mortgage (ARM) is best for buyers who plan to move, sell, or refinance within the initial fixed period and those comfortable with some risk and potentially lower initial payments.