The problems with subprime lending will affect you even if you will never apply for a subprime mortgage. These problems have caused the lending institutions to be more careful in judging the credit worthiness of borrowers. As a result, qualifying for a mortgage is tougher. Borrowers are being held to guidelines as to the amount of their income that can be spent on housing.
Some respected economists have voiced concerns that this crisis in subprime lending will also not only impact the housing and lending industry, it will also drive down the value or the amount a homeowner can get when selling his or her house. As we continue to see problems from the subprime mortgages, the number of potential home buyers continues to drop because of the tightening of available mortgage money. In addition, because many of the lenders involved in subprime loans were also publicly traded companies, the stock market has suffered a few hits.
On a positive side, the subprime lending crisis will probably result in fewer people being financially overextended, due to the additional scrutiny of lenders. In addition there is currently more public education available about mortgages, borrowing money, fixing your credit, and predatory lending than ever before.