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riskbased pricing: What You Need to Know About Risk Based Pricing & Mortgage Rates - 12/31/07 04:17 PM
There have been many consequences of the subprime mortgage meltdown. But one which has received very little attention so far is the repricing of risk by investors who buy mortgages. That is about to change. What’s important to understand about this fuzzy term is that mortgage rates will now rise even for consumers with decent credit scores. Meet risk-based pricing.
In the 2007 mortgage meltdown, investors realized that the low interest rates previously offered didn’t adequately cover the risk of default. Past projections floated on a rising tide of appreciation that kept every one off the reef. Now that the tide … (0 comments)

 

Marc Brinitzer

Sacramento, CA

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Big Valley Mortgage

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