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The whole mortgage market is caught in a “web†made all the more critical due to the current state of the US economy however; the mortgage crisis is simply one side of the coin.
Subprime borrowers, with low rates of 7% to 8%, will see rates reset at numbers like 11%. Prime borrowers are seeing rates jump to 20% and more causing them to come near to defaulting on their loans (Morrissey, 2008)...
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Prime borrowers are seeing rates jump to 20% and more causing them to come near to defaulting on their loans (Morrissey, 2008). This increase in rates will create a domino effect altering most of the financial markets. Prime borrowers and those who have the need for mortgages will find that with the new lending rates and policies a mortgage is near impossible...
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