Subprime synonyms

Creditors consider consumers as either prime borrowers or subprime borrowers.

During 2007, many people unfamiliar with the term found themselves asking "what is a subprime mortgage"?

A majority of subprime home loans are adjustable rate mortgages (ARM), meaning that interest rates adjust up or down, depending on a variety of economic factors.

The mortgage lender assumes greater risk of default by making loans to individuals in the subprime market segment.

As the foreclosure rates on subprime mortgages continued to rise, the solvency of lenders specializing in subprime mortgages began to decline.