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Alternative Mortgage
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Alternative Mortgage: Any mortgage loan that is not a standard Fixed-Rate Mortgage (FMR). This includes Adjustable Rate Mortgages (ARM), Interest Only Mortgage, Reverse Mortgages, and Jumbo Mortgages.
Alternative Mortgages have become extremely popular over the last 7 years because lenders are becoming more flexible with consumers. Typically consumers that have lower income, bad credit, or other derogatory information will apply for an alternative mortgage. Although they may seem a good option, many lenders are using deceptive and predatory lending practices to get consumers to buy this type of mortgage. |
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