Definition of «subprime»

Subprime is an economic term used to describe a loan or investment that has a higher risk of default due to the borrower's poor credit history, low income, or other factors that indicate they may not be able to repay their debt. In other words, subprime refers to borrowers or investments that fall below prime standards and are considered more risky than traditional loans or investments.

Sentences with «subprime»

  • These days, nearly everyone speaks poorly of subprime mortgage loans. (homebuyinginstitute.com)
  • A growing volume of subprime loans in recent years has resulted in record - level defaults as borrowers struggle to make the higher payments. (nreionline.com)
  • With some 5 percent of subprime mortgage borrowers facing trouble and global investors wondering if prime mortgages remain a smart investment, these are indeed challenging times for real estate. (realtormag.realtor.org)
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