Please use Subprime Blogger to get your information on average mortgage rates.  There are also several articles to help you get low mortgage rates.

Subprime lending is a financial term used to describe financial institutions providing credit to borrowers who are deemed risky or “underbanked” due to financial restrictions.  Subprime borrowers are often slapped with higher loan rates as they are at a higher risk for loan default.  Subprime lenders take on extreme risk as they are lending money that might not be paid back.

The above situation is exactly what caused the “Subprime Crisis” of 2007.  Mortgage lenders had been giving money to risky individuals for over a decade and when the economy started to go south, the “at risk” borrowers could not pay back their commitments and had to default.  One lender falling lead to another which has created the current market condition we are currently in.  Subprime lending ultimately lead to the troubled economy we are in today.

There have been many ideas as to how to get out of this situation, but the best way is to let the financial institutes default, just like the borrowers they approved and let the economy “flush” itself out.  What are your reactions to this idea?

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