subprime

adjective

sub·​prime ˈsəb-ˌprīm How to pronounce subprime (audio)
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
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Michael Burry, who shot to fame by calling the subprime mortgage crisis, loaded up on bearish bets against Nvidia and Chinese internet stocks in the first quarter. Yun Li, CNBC, 15 May 2025 Join 20 others in the comments View Comments And while more than half of the newly delinquent borrowers already had subprime credit scores, 2.4 million others had scores above 620 and saw average negative score changes north of 140 points, New York Fed research showed. Alicia Wallace, CNN Money, 13 May 2025 In 2007, the Global Financial Crisis started close to home, in U.S. subprime mortgage credit markets, reaching global pandemic scale in 2008. Ann Rutledge, Forbes, 31 Dec. 2024 The areas hardest hit by Sandy had suffered during the subprime crisis – when some homeowners were charged exorbitant mortgage interest rates – and subsequent recession, and home prices had not yet started to rise again. Andrea Riquier, USA Today, 20 May 2025 See All Example Sentences for subprime

Word History

First Known Use

1995, in the meaning defined at sense 1

Time Traveler
The first known use of subprime was in 1995

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Cite this Entry

“Subprime.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/subprime. Accessed 10 Jun. 2025.

Legal Definition

subprime

adjective
sub·​prime ˈsəb-ˌprīm How to pronounce subprime (audio)
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

More from Merriam-Webster on subprime

Last Updated: - Updated example sentences
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