subprime

adjective

sub·​prime ˈsəb-ˌprīm 

1

: having or being an interest rate that is higher than a prime rate and is extended chiefly to a borrower who has a poor credit rating or is judged to be a potentially high risk for default (as due to low income)

subprime mortgages

a subprime loan

2

: extending or obtaining a subprime loan

subprime lenders

subprime borrowers

Examples of subprime in a Sentence

Recent Examples on the Web

My second glass cliff was during the subprime crisis, when Bank of America bought Merrill Lynch. —Eleanor Pringle, Fortune, 27 June 2024

The subprime mortgage crisis, which brought the American economy down with it starting in 2008, dealt a devastating blow to Wisconsin's homebuilding sector. —Genevieve Redsten, Journal Sentinel, 9 Oct. 2024

Michael Burry, best known for calling the subprime mortgage crisis, may have anticipated such a policy move. —Yun Li, CNBC, 3 Oct. 2024

Payments are always $404 Targeting Struggling Buyers Exeter has always specialized in the subprime market. —Ryan Gabrielson, ProPublica, 12 Sep. 2024

Word History

First Known Use

1995, in the meaning defined at sense 1

Legal Definition

subprime

adjective

sub·​prime ˈsəb-ˌprīm 

1

: having or being an interest rate that is higher than a prime rate and is extended especially to low-income borrowers

subprime mortgages

2

: extending or obtaining a subprime loan

subprime lenders

subprime borrowers