The American economy has seen better times.
The catalyst behind the current recession is the mortgage and housing sector.
Foreclosure levels are skyrocketing and the American homeowner is suffering the worst.
A large part of the financial trouble consumers are having is due to subprime mortgage loans. Many prime borrowers took subprime mortgages. This is unfortunate as many of these folks were misinformed and assumed that they were getting a good deal. Large portions of the once prime borrower population have now needlessly lost their home. They simply did not bother to read the loan contracts they were signing, or they failed to see the risk they were assuming.
It is important for consumers to understand basic mortgage lending and borrowing concepts. One such concept related to mortgage lending is the difference between a prime mortgage and a subprime mortgage.
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