What the Subprime Lending Crash is Going to Do to You
August 10, 2007 by Miranda Marquit
Filed under Investing, Mortgage and Loans, Personal Finance
The word is out. Ben Bernanke’s famous “contained” statement about the subprime lending crash from not too long ago has been considered way wrong, and now rumors are flying of an emergency Fed meeting. The “shoddy” lending practices espoused by banks and brokers for the last decade have finally caught up with the U.S. economy. And in a big way. But how will the subprime lending crash affect you? Well, it depends on where you are standing.
Sure, lending standards are going to tighten. But on the other hand, mortgages rates have dropped already. And if the housing market and the mortgage loan market wants a recovery, they will have to drop further. If you have good credit, and if you can provide good documentation, you could get a good deal on your mortgage loan interest rate.
Another interesting thing to consider is that you have other opportunities associated with the subprime lending crash is the drop in stock prices. Yesterday’s rather dramatic fall, and today’s rather spectacular struggle on the stock market are leading to some good deals in terms of investments. You can pick up some stocks for cheap. But remember to carefully consider your options. You want to buy stock in a company that will likely recover.
Comments
One Response to “What the Subprime Lending Crash is Going to Do to You”Trackbacks
Check out what others are saying about this post...[...] of the main things to be aware of is that lending standards have tightened as a result of the subprime lending crash. This means that you are going to need [...]