What you should know about mortgages & credit
We've all heard the horror stories of people who have lost their homes to foreclosure because of the current subprime lending crisis. Homeowners who may have been able to afford their monthly mortgage payments at the introductory rate are finding they can no longer make their payments because the interest rate has dramatically increased. Or, they chose interest-only payments or put zero down and are finding they have no equity. If it comes time to sell, having no equity built up in a home can be hazardous during a downturn in the housing market. Sellers may find they owe more than the market says their homes are now worth.
What is predatory lending? How can you protect yourself and your home? What are the risks and advantages of specialty mortgages vs. traditional mortgages? Do you know how your credit score affects your ability to get a loan? The following articles and links will help educate you on these very important topics.