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.
Related information about subprime mortgage:
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For the 2007 house mortgage crisis, see Subprime mortgage crisis. In finance, subprime lending (also referred to as near-prime, non-prime, and second-chance ...
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The U.S. subprime mortgage crisis was a set of events and conditions that led to the late-2000s financial crisis, characterized by a rise in subprime mortgage ...
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Sep 7, 2007 ... A subprime mortgage is a type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit.
- HowStuffWorks "How Subprime Mortgages Work"
Subprime mortgages have allowed people with shaky credit to buy houses. Learn more about subprime mortgages and how to get a subprime mortgage.
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Apr 1, 2005 ... But lesser credit flaws won't necessarily stop you from getting a home loan. An industry of subprime mortgage lenders has sprung up to serve ...