Home mortgage explored
An increasing number of consumers who were not eligible for a traditional home mortgage were offered sub prime mortgages. In some cases, borrowers were given loans that required no money down, often without having to verify their income. Assuming the housing market would not go down, others placed their bets on a home mortgage with a variable interest rate. There was so much optimism about the housing market that banks were selling more and more home mortgage loans on the secondary mortgage market to be packaged and sold as mortgage backed securities. When the real estate market began to decline and the credit crisis set in, many consumers, banks and investors found themselves struggling.