It seems that the trend of lenders giving subprime mortgage loans might be taking a hiatus. Today's financial news reports that delinquencies in late mortgage payments are a 3.5 year high. This is not good for lenders and in general for financial markets.
If you are not familiar with subprime mortgages - they are basically mortgage loans and mortgage refinance loans offered to people with bad credit. With the recent rapidly gained equity in home values, some lenders did not consider these types of loans to be too much of a credit risk so they gave people who had low credit score new home buyer loans. New home purchase subprime loans are the most risky because you are offering a loan to someone who has not proven that they can pay their bills on time.
Subprime refinance loans are less risky because chances are an existing homeowner will want to stay in their home and strive to keep up with their payments. In addition, they have equity in their home. Thus, if you are already a homeowner getting a subprime refinance loan is not as difficult as a new home buyer getting a new home purchase subprime refinance loan.
You can still get a subprime refinance loan with a credit score of 600 and up.
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For mortgage refinance loans, home equity loans, home equity line of credit (HELOC) and debt consolidation loans visit http://www.kstreetloans.com.
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