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Distribution Analysis Of 2006 Subprime Rate Loans
Subprime Rate Loans By Loan Purpose
In 2006, more subprime rate loans were used to refinance
an existing mortgage than to purchase a new home. Of the
1,971,809 subprime rate loans in 2006, refinance loans
accounted for 55.82% and home purchase loans 44.18%.
Refinance loans had a higher frequency of being higher-cost
subprime rate loans at 29.85%, but a lower average spread
of 5.11%. The subprime rate frequency for home purchase
loans was 24.86% with a higher average spread of 5.27%.
(Table 4)
TABLE 4: LOAN PURPOSE BY HMDA SPREAD
Page 14 of 27 The Demographic Impact of the
Subprime Mortgage Meltdown