What is a Ninja Loan?

A ninja loan is a loan to those who have no income, no job, and no assets. This type of loan refers to the fact that a mortgage lender has no income, no job, and no assets (no income, no job, no asset), and can also borrow a mortgage. Ninja means "Ninja" in Japanese.

Ninja loan

Right!
A ninja loan is a loan to those who have no income, no job, and no assets. This type of loan refers to the fact that a mortgage lender has no income, no job, and no assets (no income, no job, no asset), and can also borrow a mortgage. Ninja means "Ninja" in Japanese.
Chinese name
Ninja loan
Foreign name
Ninja loan
To source
United States
Nature
Subprime mortgage
Subprime mortgage is
The story starts from the previous bubble. The technology bubble burst at the turn of the century, and the Federal Reserve Board (Fed), which helped save the economy, cut interest rates sharply. In 2003, interest rates fell to an extremely low level of 1%. The ultra-low interest rate environment encourages many people to borrow money to buy a house. At this time, "financial innovation" provided many new loans, making it easier to buy a house. Adjustable interest rate loans (ARM) allow lenders to pay ultra-low interest at a fixed interest rate in the first three to five years, and start to raise interest rates at the same time based on the current interest rate situation. Many lenders simply don't know how high a loan will be after the low interest period. There are even more incredible "Negative Amortization" mortgages. The lender's monthly payment is lower than the interest payable, and the difference is added to the principal to continue to roll interest.
[1]

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?