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  2. Government policies and the subprime mortgage crisis

    en.wikipedia.org/wiki/Government_policies_and...

    Among the new mortgage loan types created and gaining in popularity in the early 1980s were adjustable-rate, option adjustable-rate, balloon-payment and interest-only mortgages. These new loan types are credited with replacing the long-standing practice of banks making conventional fixed-rate, amortizing mortgages.

  3. Subprime mortgage crisis - Wikipedia

    en.wikipedia.org/wiki/Subprime_mortgage_crisis

    The interest-only adjustable-rate mortgage (ARM) allowed the homeowner to pay only the interest (not principal) of the mortgage during an initial "teaser" period. Even looser was the "payment option" loan, in which the homeowner has the option to make monthly payments that do not even cover the interest for the first two- or three-year initial ...

  4. What is a subprime mortgage? - AOL

    www.aol.com/finance/subprime-mortgage-175324178.html

    Subprime mortgages can come with fixed rates, adjustable rates or interest-only terms. They carry higher interest rates and often more onerous down payment requirements.

  5. What is an interest-only mortgage and how does it work? - AOL

    www.aol.com/finance/interest-only-mortgage-does...

    An interest-only mortgage is a home loan that allows borrowers to make interest-only payments for a set amount of time, typically between seven and 10 years, at the start of a 30-year term.

  6. Housing and Economic Recovery Act of 2008 - Wikipedia

    en.wikipedia.org/wiki/Housing_and_Economic...

    The United States Housing and Economic Recovery Act of 2008 (commonly referred to as HERA) was designed primarily to address the subprime mortgage crisis.It authorized the Federal Housing Administration to guarantee up to $300 billion in new 30-year fixed rate mortgages for subprime borrowers if lenders wrote down principal loan balances to 90 percent of current appraisal value.

  7. What Is An Interest-Only Mortgage? - AOL

    www.aol.com/interest-only-mortgage-190002695.html

    For interest-only mortgages backed by some financial institutions, you must make a down payment of at least 30%, which is significantly higher than as little as 3% on a traditional 30-year ...

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