Subprime Mortgage Crisis: The Multinational Financial crisis

The United States Subprime mortgage crisis was a Multinational Financial crisis that occurred between 2007 and 2010. Subprime mortgage financial crisis can be described as a sharp and unprecedented rise in home foreclosures that occurred due to the defaulting in subprime mortgage loans. This started during the fall of 2006 in the United States and ended up eventually becoming a global financial crisis within a year. Subprime mortgage crisis indirectly contributed to the Global financial crisis of 2008. There are many varieties of mortgage loans available in the market:  Fixed Mortgage Loan, Adjustable rate mortgage loan or ARM, Balloon Loan and  Subprime Loan. Subprime mortgage loans are those that are offered to high credit-risk borrowers with lower income or tainted credit history. These loans are primarily adjustable-rate mortgage loans where the interest rates are low for the initial 2-3 years and are thereafter readjusted to a higher rate.