Mortgage rate A review of the facts
During this time, the subprime home mortgage market flourished, as more and more lenders offered loans to consumers who did not qualify for regular prime loans. Some of those people were able to take on those loans with zero down payment or proof of their wages and assets. In other cases, a consumer took on an adjustable rate home mortgage anticipating that the home value would increase or they would get a raise before the rates changed. Even banks and investors thought the real estate market was no longer a risky venture, as mortgages were being repackaged and resold in various forms. Homeowners, lending institutions, banks and those invested in the various home mortgage derived products were left reeling from their losses when the housing market dropped and the credit sector hit troubled times.