| If you have bad credit history, no down | | | | 9-12% or more. Now, if this is all for the |
| payment or difficult to prove income and are | | | | same qualifications, you could be talking |
| looking to get approved for a home mortgage | | | | about hundreds of dollars a month extra in |
| loan, you will probably need to look at | | | | payments just because you are not getting a |
| subprime mortgage lenders to help you. To | | | | fair interest rate for your qualification. |
| see a list of our recommended subprime | | | | This is where the borrower needs to be |
| mortgage lenders you can click on the link | | | | careful. Make sure you are getting the best |
| below. | | | | interest rate possible with your subprime |
| | | | lender. Some subprime lenders take advantage |
| There are a few things to know about subprime | | | | of borrowers with bad credit or hard to |
| mortgages lenders. They specialize in | | | | approve situations, and they charge much more |
| providing mortgage loans for people with less | | | | in interest than what is fair for to the |
| than ideal situations, whether it be | | | | borrower. |
| difficult to prove income, low or poor credit | | | | |
| scores (most often the case with subprime | | | | Another way subprime mortgage lenders can |
| mortgages), or no down payment (this factor | | | | take advantage of unsuspecting borrowers is |
| alone will not necessarily put you in the | | | | by the lender having a pre-payment penalty on |
| subprime loan category). | | | | the loan that is unreasonable and not fair to |
| | | | the borrower, based on their qualifications. |
| The interest rate on a subprime mortgage | | | | A typical subprime mortgage loan will have a |
| loans will be higher than any other type of | | | | 6 month to a 2 year pre-payment penalty. |
| mortgage loan where credit, income and down | | | | However, sometimes a subprime lender will |
| payment are all optimal. However, with | | | | offer a loan with a 3 year or higher |
| subprime mortgage loans, as a borrower, you | | | | pre-payment penalty. That is too high, I |
| need to be careful about a few things when | | | | think a 2 year pre-payment penalty is high, |
| dealing with subprime mortgage lenders. | | | | but any higher than that, and you should |
| | | | probably keep looking for a new lender. |
| The interest rate with subprime mortgages can | | | | |
| vary greatly. There are some subprime | | | | Other than a couple of things to be careful |
| mortgage lenders that, for the same set of | | | | of when dealing with subprime lenders, |
| qualifications, can offer an interest rate of | | | | getting approved, even with a slightly higher |
| say, 7%, which is a little above average, and | | | | interest rate, can be a really great thing |
| then there will be others who will quote | | | | for you to buy the home you want. |