subprime loan
High-risk borrowing
A subprime loan is a loan made to a borrower with poor credit history or other risk factors that disqualify them from standard lending terms.
These loans typically carry higher interest rates to offset the lender's increased risk.
The term gained notoriety during the 2008 financial crisis, when widespread defaults on subprime mortgages triggered a global economic collapse: They refinanced into a subprime loan when no traditional lender would approve them.
- mortgageSecured home loan
- housing bubbleUnsustainable property price surge
- foreclosureLender seizes mortgaged property
- defaultPreset standard option
- riskyInvolving possible harm
housing · real estate · home equity · bubble · crisis · predatory lending · predatory · lender · adjustable rate · adjustable · rate · debt · credit · credit score · bad credit · borrower · 2008 · Wall Street
- debtdebt, creditor, owe, debtor, lender
- loanslend, borrow, borrower, lender, microloan
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage payment, mortgage insurance
- auto loansmonthly payment, down payment, interest rate, APR, refinance
- credit riskcredit score, credit rating, creditworthiness, credit analysis, delinquency