Definitions from the Web
Term: subprime-mortgage
Description:
A subprime mortgage refers to a type of loan that is extended to borrowers with lower credit ratings or inadequate financial history. These loans often carry higher interest rates, fees, and are considered to have a greater risk of default compared to prime mortgages.
Senses and Usages:
- As a noun:
- A subprime mortgage can be a financial instrument that enables individuals with poor credit to purchase homes.
- During the housing crisis, the high number of subprime mortgages contributed to the collapse of the housing market.
- Many lenders tightened their lending criteria after experiencing significant losses from subprime mortgages.
- As an adjective (subprime-mortgage):
- The subprime-mortgage crisis led to widespread financial instability.
- Investors sought to minimize exposure to subprime-mortgage-backed securities.
- Lenders offered subprime-mortgage rates to attract more borrowers.
Sample Sentences:
- The family struggled to secure a subprime mortgage due to their less-than-perfect credit history.
- She refinanced her subprime mortgage to take advantage of lower interest rates.
- The subprime-mortgage industry faced severe criticism for predatory lending practices.
- Despite the risks, many individuals rely on subprime mortgages to achieve homeownership.
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