The Inside Job Pt. 1

What is a loan?  Do you know anyone who has borrowed money to buy a house?  Who lent them the money?  Did the borrower have to make a down-payment?  Why?

In addition, it is important to know that if a borrower has a bade credit history, as about 1 in 4 peoples do, then their loan is known as a "sub-prime" mortgage.  Why would a bank even consider making a sub-prime loan? 

A loan is money that is provided to you now that you must repay later. Typically, lenders will give you a single immediate payment. In return you will be expected to send them smaller payments each month.  But there will always be interest which most of the time is high. Yes Ernesto aunt recently got a loan but there was for a brand new house everything had to me new to be able to get the loan and they check everything they did have to have some money and they also needed to know info about the job the manger had to write a letter on how much money they made and to make sure they were responsible and can in fact pay everything.

Banks want money coming in a sometimes it's rare they do given out loans to people that have jobs but can have a chance paying of paying but they have a really high interest loan. They get money coming in.