More info on Wikipedia
Quick Facts
- US subprime mortgages were valued at $1.3 trillion in March 2007.
- In 2007 roughly 15-20% of US subprime loans were delinquent in payments.
- Majority of subprime mortgages are adjustable-rate mortgages.
- Subprime mortgages are more prominent in counties with high unemployment.
- Estimated 6.7 million subprime loans as of 2008.
Expert summary
Subprime mortgages are high risk mortgages that are usually offered to borrowers who couldn't access credit previously. There is some dispute about what should be considered a subprime mortgage, but there are some basics. These mortgages allow buyers with low credit scores, smaller down-payments, or little documentation of income to purchase houses. They also allow current owners to refinance their loans and pull cash from appreciating houses. These mortgages have been concentrated in areas experiencing fast growth and plentiful construction. Furthermore, the borrowers have tended to live in Zip codes with more black and Hispanic residents. Many of these borrowers defaulted on their loans causing the failure of mortgage companies and... Read more
Recommended content by 1 experts
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Academic Article on Subprime Loans
An interesting paper on what subprime mortgages are, where they are found, and to whom they are given. -
RealtyTrac Foreclosure Information
Foreclosure statistics can be found here from the world's 3rd largest real estate site. -
US Federal Reserve Website
The Fed's site links to information from various sources regarding economic issues including subprime loans.
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Subprime Mortgage Blues
The subprime mortgage crisis set to catchy blues music. Entertaining and educational. -
Bird and Fortune - Subprime Crisis
John Bird and John Fortune describe the subprime mortgage crisis in a humorous way. -
John Vogel Subprime Mess
John Vogel speaks about the factors that led up to the subprime mortgage crisis.
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Foreclosure Graph by Mortgage Type
A graph depicting the percentage of foreclosures based on the mortgage type. Subprime involves the largest percentage. -
Complex Borrowing System
This graphic helps to show the complexity of the lending and borrowing system. -
Subprime Mortgage Map
This is a very interesting map of the United States that shows the areas with the greatest number of subprime mortgages.
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Financial Shock
A book dedicated the the subprime mortgage implosion and how to avoid another disaster. -
Engineering a Financial Bloodbath
Another book explaining the source of the subprime mortgage crisis. -
Mortgage Ripoffs and Money Savers
An instructional book on mortgages in the general case. Outlines some dos and don'ts.
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