Posts tagged as «finance and economy»

Moreover, he was so full of enthusiasm that he decided to grant mortgages worth more than the value of the house that he bought the ninja, because, with that boom property, that house, in a few months, it would be more than the amount given on loan. This type of mortgage, they were called “subprime” i. They are called “prime mortgages” which have little risk of default. On a rating scale between 300 and 850 points, prime mortgages are priced between 850 and 620 points the best the less good. ii. They are called “subprime mortgages” which are more likely to default and are priced between 620 and 300 the least good, the bad.

Moreover, as the U.S. economy was going well, the insolvent debtor could find a job today and pay the debt without problems. This approach was well for some years. In those years, the ninja were paying the mortgage installments and also as they had been given more money than her house was worth, had bought a car, had made reform at home and had gone on holiday with family . This, surely, in installments, with the extra money they had collected and, in some cases, making them paid in a botched job or they have achieved.

1st. Comment: I think that, so far, everything is very clear and it is also clear that anyone with common sense, although not a financial expert, you may think that if something fails, the bump may be important. As for the second (increasing the number of operations): As many banks were giving mortgages, they had the money.