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Are all adjustable rate mortgage loans subprime mortgage loans?

April 26, 2017adjustable rate mortgage Loans mortgage loans subprime

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Are all adjustable rate mortgage loans subprime mortgage loans?

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• No. Adjustable rates do not automatically make a loan a subprime mortgage loan. Subprime mortgage loans are either Rate spread home loans that must be reported under the law, loans that permits the deferral or principal or interest (such as an interest-only 2/28 ARM or 3/27 ARM), or high-rate high-fee loans.