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Sub Prime Loans

Sub prime loans are typically offered to persons with poor credit histories or those with a lack of credit history, and they carry a higher rate of interest than prime loans to compensate the lender for increased credit risk. Sub prime loans for mortgages or refinancing fall more often into foreclosure for reasons that may include higher interest rates, ignorance of a person’s ability to repay the loan, ballooning interest payments, and hidden fees.

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