subprime mortgage


A class of mortgage used by borrowers with low credit ratings. Borrowers who use subprime loans generally do not qualify for loans with lower rates because they have damaged credit or no credit history, and are thus considered risky by lending agencies. Because the default risk for poor credit borrowers is greater than of other borrowers, lenders charge a higher interest rate on subprime loans.

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We had to use subprime mortgage because we had low credit ratings and could not afford to do it elsewhere.

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You should try and make sure that you have a good enough credit rating that you do not need a subprime mortgage.

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The subprime mortgage was a veritable whipping-boy in the aftermath of the housing market meltdown, with many decrying the practice as ludicrous.

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