Subprime refers to higher risk. These are mortgages that are issued to individuals who are often not qualified. That is, the long term monthly mortgage payment is more than their income. Often, these mortgages are issued on the expectation that the homeowners income will rise in the future. These mortgages are often made feasible by teaser rates. T...
See: subprime loan
A subprime mortgage is a home loan that is given to applicants with a poor credit history who typically do not qualify for traditional mortgages.