Subprime mortgage brokers offer a variety of mortgage loan packages from different lending companies. They can find financing for almost anyone, regardless of their credit score. Even though brokers offer a valuable service, you still need to ask questions to be sure you are getting the best deal.
1. What Is Your Fee?
Before you begin working with a subprime mortgage broker, ask how they are getting paid. Sometimes they charge you an upfront fee, other times they are paid by the mortgage company.
Upfront fees don’t guarantee you the best deal, but they do reduce the broker’s reliance on mortgage companies’ fees. Instead of looking at who offers them the best payoff, they are looking at your interest.
Fees paid by the mortgage company can still mean you find a good deal. Most brokers are able to negotiate lower rates for you, so you still come out ahead. Using this type of broker also allows you to work with a couple of brokers, making sure you find the best deal.
2. What Are The Loans Fees?
Even when brokers present you with rate quotes, take the time to look at fees and points. The APR should include both the rates and fees. It is required to be disclosed before signing a contract so you can make a real comparison. Sometimes the lowest rate loan has the highest closing fees and isn’t the best deal.
The rates presented to you are somewhat flexible. You can reduce them by paying more points or increasing your down payment. Points only make sense if you plan on keep the loan for a number of years.
3. Are There Early Payment Fees Or Other Clauses?
Also check for early payment or other fees. Subprime mortgages are often refinanced when your credit score improves. Check to see if you can pay a point to waive the early payment fee if you plan to refinance.
Some subprime lenders will automatically refinance your loan for better rates after two years. This can save you thousands on later refinancing costs. Just like any loan offer, check the rates with other packages.
The Federal Housing Administration is being criticized for underwriting subprime loans, which critics say could lead to another wave of loan failures. Paddy Hirsch explains subprime lending and its inherent risks. #MarketplaceAPM #SubprimeLoans #EconomicExplainers
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How to deal with subprime mortgage loans
How to deal with subprime mortgage loans
What to do if you have a subprime mortgage you can't handle? Default, walk away, sell at a loss? Here's everything you need to know from author and Fox Financial Correspondent, Gerri Willis.
Subprime Mortgages part 1
The personal tragedies when the bank forecloses on a homeowner. What subprime means
The Big Short - Jenga Clip (2015) - Paramount Pictures
When four outsiders saw what the big banks, media and government refused to, the global collapse of the economy, they had an idea: The Big Short. Their bold investment leads them into the dark underbelly of modern banking where they must question everyone and everything. Based on the true story and best-selling book by Michael Lewis (The Blind Side, Moneyball), and directed by Adam Mckay (Anchorman, Step Brothers) The Big Short stars Christian Bale, Steve Carell, Ryan Gosling and Brad Pitt.
Director: Adam McKay
Starring: Christian Bale, Steve Carell, Ryan Gosling, Brad Pitt, Melissa Leo, Hamish Linklater, John Magaro, Rafe Spall, Jeremy Strong, Marisa Tomei and Finn Wittrock
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God's take on the Sub-prime Mortgage Crisis
What is the biblical take on charging interest (among other things!)?
Given today's financial credit crisis - consumer debt, banker debt, national debt, this is a very relevant matter. What is God saying through this credit crisis?
The 2008 Financial Crisis: Crash Course Economics #12
Today on Crash Course Economics, Adriene and Jacob talk about the 2008 financial crisis and the US Goverment's response to the troubles. So, all this starts with home mortgages, and the use of mortgages as an investment instrument. For years, it seemed like the US housing market would go up and up. Like a bubble or something. It turns out it was a bubble. But not the good kind. And the government response was...interesting. Anyway, why are you reading this? Watch the video!
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Financial Crisis Inquiry Report:
TAL: Giant Pool of Money:
Timeline of the crisis:
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How to Find a Good - Mortgage Loan Officer (Video 3.1)
How to Buy the House You're Now Renting Video Course
Chapter 3: How to Find Good Team Members
Video 1: Mortgage Loan Officer
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Financial Crisis Explained: Subprime Mortgage
Here's the first episode.
Subprime Mortgage Crisis 2.0 - Top Cities Where Real Estate Will Crash Due To Subprime Foreclosures!
Real Estate Investor Videos:
On today's video we talk about the rapid rise in delinquent FHA Subprime Mortgages. The government is now saying over 1.3M FHA mortgages are delinquent, with many being seriously delinquent. That means we'll see more foreclosures on these delinquent mortgages in the future. However, due to eviction & foreclosure bans in most places - it's likely these subprime mortgages will remain off the market for a long period of time. That will likely lead to them all coming to market around the same time, which should flood the housing market with supply - driving prices down in these areas.
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25. The Leverage Cycle and the Subprime Mortgage Crisis
Financial Theory (ECON 251)
Standard financial theory left us woefully unprepared for the financial crisis of 2007-09. Something is missing in the theory. In the majority of loans the borrower must agree on an interest rate and also on how much collateral he will put up to guarantee repayment. The standard theory presented in all the textbooks ignores collateral. The next two lectures introduce a theory of the Leverage Cycle, in which default and collateral are endogenously determined. The main implication of the theory is that when collateral requirements get looser and leverage increases, asset prices rise, but then when collateral requirements get tougher and leverage decreases, asset prices fall. This stands in stark contrast to the fundamental value theory of asset pricing we taught so far. We'll look at a number of facts about the subprime mortgage crisis, and see whether the new theory offers convincing explanations.
00:00 - Chapter 1. Assumptions on Loans in the Subprime Mortgage Market
18:27 - Chapter 2. Market Weaknesses Revealed in the 2007-2009 Financial Crisis
29:00 - Chapter 3. Collateral and Introduction to the Leverage Cycle
38:53 - Chapter 4. Contrasts between the Leverage Cycle and CAPM
43:36 - Chapter 5. Leverage Cycle Theory in Recent Financial History
01:03:55 - Chapter 6. Negative Implications of the Leverage Cycle
01:14:14 - Chapter 7. Conclusion
Complete course materials are available at the Open Yale Courses website:
This course was recorded in Fall 2009.
Lehman Brothers collapse: What went wrong ten years ago?
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Ten years ago this week, US investment bank Lehman Brothers collapsed, unleashing a global financial crisis. In this special edition of the show, we focus on that crash and the slow climb back to normal. We look back at the economic crisis with Adam Tooze, the author of Crashed: How a Decade of Financial Crises Changed the World.
September 15 marks the ten-year anniversary of what became known as Lehman Weekend, when US investment bank Lehman Brothers collapsed in the thick of the 2008 subprime mortgage meltdown. It was the biggest bankruptcy in US history, leading up to the world's worst economic crisis since the 1930s Great Depression.
After the peak of the 2008 financial crisis, millions of people lost their jobs and many also lost their homes. More than three million foreclosures took place in the US, and many more around the world.
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Sub-Prime Banking Crisis
Title: The Sub-Prime Banking Crisis or Ode to the American Consumer (A Perfect Tragedy)
Introduction by Professor Scott Fine
Presenter: Professor Peter Ritchken
Recorded on October 22, 2008 in the Peter B Lewis Building on the campus of Case Western Reserve University
Produced by: Weatherhead School of Management Classroom Technology and Facilities
The Crisis of Credit Visualized - HD
The Short and Simple Story of the Credit Crisis -- The Full Version
By Jonathan Jarvis.
The goal of giving form to a complex situation like the credit crisis is to quickly supply the essence of the situation to those unfamiliar and uninitiated.
This is the original, full version.
Subprime Crisis: The Role of Off Balance Sheet Entities
The first lesson in a three part mini course on intermediate topics relating to the subprime financial crisis. In this lesson we cover the basics of what are off balance sheet entities?
????⬇ Housing Bubble and the Great Recession | 2008 Financial Crisis
2008 Financial Crisis (The Great Recession) was initiated by bursting of the housing bubble. But why there was a housing bubble in the first place? What was the root cause of the crisis of credit? What was the government response?
Learn Austrian Economics in a fun way!
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Artifact – The Dark Contenent
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Kevin MacLeod: Home Base Groove – na licencji Creative Commons Attribution (
Econ Clips is an economic blog. Our objetive is teaching economics through easy to watch animated films. We talk about variety of subjects such as economy, finance, money, investing, monetary systems, financial markets, financial institutions, cental banks and so on. With us You can learn how to acquire wealth and make good financial decisions. How to be better at managing your personal finance. How to avoid a Ponzi Scheme and other financial frauds or fall into a credit trap. If You want to know how the economy really works, how to understand and protect yourself from inflation or economic collapse - join us on econclips.com. Learn Austrian Economics in a fun way!
Australia's Secret Sub-Prime Crisis
Nick Hubble takes us on a journey...
How to Prepare For a Mortgage Application
This is how to prepare for a mortgage application. From my experience, not financial advice.
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Deconstructing the Subprime Crisis
In this Special Report, Knowledge@Wharton finds that the credit crisis was triggered when Wall Street alchemists, overeager borrowers and aggressive lenders let their eye for opportunity trump their nose for risk. New regulations might prevent a recurrence -- but so would diligent decision-making.
How to choose a mortgage - Choosing a mortgage
How to choose a mortgage - Choosing a mortgage
If the subprime mortgage crisis still has you nervous about borrowing money to buy a house, relax. Author and Fox Financial Correspondent, Gerri Willis, explains what you need to know to choose the right mortgage for your financial situation.
Low doc loans
Fraud charges and repossessions are two outcomes of loans provided without all the usual documents required according to a former mortgage broker.
The 2008 Housing Crisis Explained
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Subscribe to Alanis Business Academy on YouTube for updates on the latest videos: The 2008 financial crisis had long-lasting effects on individuals, households, and businesses. At one point the unemployment rose to over 10% nationally, prominent banks (including investment banks Lehman Brothers) failed or were taken over, and many families lost their homes. But how did the financial crisis begin? Learn about the dynamics involved with the creation of the latest financial crisis, which starts with the American dream: homes.
Questions to Ask When You're Getting a Mortgage: Canadian Guide to Mortgages
Arm yourself with these questions and get mortgage free sooner.
California Event: The Mortgage Crisis in California
The New America Foundation and the Asset Policy Initiative of California, in association with Assemblymembers Ted Lieu (D-Torrance) and Ted Gaines (R-Roseville), cordially invite you to join us Monday, November 19th, for the third in a series of policy forum discussions in Sacramento designed to inform policymakers, legislative staffers, and advocates about asset-building research, data, and policies.
Our featured speaker, Paul Leonard, will discuss the current subprime mortgage crisis — its causes, the continuing effect it will have on homeownership, wealth, and the California economy, and possible solutions. Paul directs the California operations of the Center for Responsible Lending. The Center is a non-profit, non-partisan research and policy organization dedicated to protecting homeownership and family wealth by working to eliminate abusive financial practices. CRL is affiliated with Self-Help, one of the nation's largest community development financial institutions.
Financial Markets are Graphs
Kevin Van Gundy, Evangelist, Neo4j:The credit default swap is connected to the CDO. The CDO is connected to the bond. Bond is connected to tranche. And it's all a house of cards!
The Big Short helped many understand for the first time what actually happened during The Great Recession and this webinar will help you understand how connected data analysis and graph theory can prevent it from happening again.
Chairman Bernanke's College Lecture Series, The Federal Reserve and the Financial Crisis, Part 3
The Federal Reserve's Response to the Financial Crisis
TEDxDartmouth - Bruce Sacerdote - The Causes of Financial Crises
Prof. Bruce Sacerdote presents on some of the causes of the recent recession and its predecessors, at TEDxDartmouth, April 17, 2010.
About TEDx, x = independently organized event
In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event. The TED Conference provides general guidance for the TEDx program, but individual TEDx events are self-organized.*
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Deciphering the Liquidity and Credit Crunch 2007-2008 (FRM Part 1 – Book 1 – Chapter 7)
AnalystPrep's FRM Part 1 Video Series
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The written summary can be found here:
After completing this reading you should be able to:
- Describe the key factors that contributed to the lending boom housing frenzy.
- Explain the banking industry trends leading up to the financial crisis and assess the triggers for the liquidity crisis.
- Describe how securitized and structured products were used by investor groups and describe the consequences of their increased use.
- Describe the economic mechanisms through which the mortgage crisis amplified into a financial crisis.
- Distinguish between funding liquidity and market liquidity and explain how the evaporation of liquidity can lead to a financial crisis.
- Analyze how an increase in counterparty credit risk can generate additional funding needs and possible systemic risk.
Financial Institutions Caused this Crisis Says Wells Fargo's Kovacevich
The current financial crisis was caused by financial institutions themselves, not by their customers, Richard Kovacevich, MBA 67, chairman of Wells Fargo, told a Stanford audience. Financial institutions exhibited a total disregard for basic risk management fundamentals and even common sense. It was fueled by greed, lapses in ethical behavior, and was unchecked by the ratings agencies he told a gathering of business and academic leaders at the day-long program organized by the Stanford Institute for Economic Policy Research on March 13. SIEPR:
Signature Lecture with Jeff Rubin: Oil and the End of Globalization
What do subprime mortgages, Atlantic salmon dinners, SUVs and globalization all have in common? They depend on cheap oil.
According to Jeff Rubin, we are poised on the brink of massive change. Dependent as it is on cheap oil, our global civilization is about to get the shock of its life.
Systems of trade, of finance, of shipping and manufacturing, of labor and international relations are all about to be rearranged. Get ready for a new world—one in which domestic manufacturing will be reinvigorated and the products and services we still enjoy will start coming from places much closer to home. There will be winners as well as losers when the age of globalization comes to an end. Distance will soon cost money, and so will burning carbon—both will bring long-lost jobs back home.
We may not see the kind of economic growth that globalization has brought, but local economies will be revitalized, as will our cities and neighbourhoods. Whether we like it or not, our world is about to get a whole lot smaller.
Financial Markets (2011) (ECON 252)
Banks are among our enduring of financial institutions. Their survival in so many different historical periods is testimony to their importance. Professor Shiller traces the origins of interest rates from Sumeria in 2000 BC, to ancient Greece and Rome, up to the Song Dynasty in China between the 10th and the 12th century. Subsequently, he looks at banking in Italy during the Renaissance and at the goldsmith bankers in 16th and 17th century England. Banks have survived so long because they solve adverse selection and moral hazard problems. Additionally, he covers Douglas Diamond's and Philip Dybvig's model, which does not only analyze the banks' role for liquidity provision, but also reveals the possibility of bank runs. This leads Professor Shiller to deposit insurance as a means to prevent bank runs. He discusses the Federal Deposit Insurance Corporation as well as the Federal Savings and Loans Insurance Corporation, together with the role that the latter played during the savings and loan crisis of the 1980s. The necessity to regulate banks in the presence of deposit insurance results in a discussion of the role of the Basel commission and an explicit calculation to illustrate the core principles of Basel III. At the end, Professor Shiller provides an overview of financial crises since the beginning of the 1990s, with the Mexican crisis of 1994-1995, and the Asian crisis of 1997.
00:00 - Chapter 1. Introduction
02:52 - Chapter 2. Basic Principles of Banking
10:46 - Chapter 3. The Beginnings of Banking: Types of Banks
24:00 - Chapter 4. Theory of Banks: Liquidity, Adverse Selection, Moral Hazard
33:03 - Chapter 5. Bank Runs, Deposit Insurance and Maintaining Confidence
41:07 - Chapter 6. Bank Regulation: Risk-Weighted Assets and Basel Agreements
53:27 - Chapter 7. Common Equity Requirements and Its Critics
01:02:49 - Chapter 8. Recent International Bank Crises
Complete course materials are available at the Yale Online website: online.yale.edu
This course was recorded in Spring 2011.