One issue to be aware of when you’re obtaining a mortgage

One issue to be aware of when you’re obtaining a mortgage are either short on cash or dealing with a poor credit rating are subprime loans. Some of these loans have fallen under considerable scrutiny lately because of a practice known as ‘‘predatory lending.’’ Subprime involves lending to borrowers with blemished, less-than-perfect credit or insufficient credit history who typically would not qualify for loans in the conventional prime market. To offset the increased risk, the lender charges higher interest rates on these loans; legitimate subprime lenders have played an important role in allowing access to home ownership (or home improvements) for many consumers who would not have qualified otherwise.