When people are interested in purchasing a home, unless they have the available cash to buy the home outright, they’re going to need a mortgage. There are two types of mortgage categories. The first is a sub-prime mortgage and the second is a prime mortgage. People hear these types of terms all the time, but they aren’t always sure were what is meant by a prime or sub-prime mortgage.

A sub-prime mortgage is typically reserved for people with less than stellar credit. These loans usually include higher fees and higher than average interest rates. This means that while it’s easier to get these loans, people end up paying more for the loan over its lifetime.

Prime mortgages, offered by Chad Baker Primelending, are specifically designed for people with excellent credit and excellent income. These mortgages offer the best possible interest rates available. For the average person, the downside to a prime mortgage is that they require big down payments.

Higher down payments can also be attributed to sub-prime mortgages should a person’s credit not be very good, or should their income be a bit suspect. However, for a prime mortgage, a higher down payment is often a way to save money over the life of the loan.

How this is accomplished is that when a higher down payment is either required or offered, it gives the home buyer instant equity in their home. This means that if they had to sell the home shortly after buying, they could potentially earn money off the sale of the home because of their equity. They can also borrow against the equity if need be.


In addition to this, if the down payment is high enough, the mortgage provider likely won’t require the homeowner to carry mortgage insurance. This is a significant cost savings over the life of the loan that can save homeowners thousands of dollars.

If you’re looking to purchase a home in the San Diego area and your credit is good, you are in a good income bracket and you have a decent amount of money set aside for down payment, you may be a perfect candidate for a prime loan. To learn more about these types of loans and what they can offer you, you should contact a Mortgage Broker Mortgage Broker SD.Chad Baker Primelending