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.
With weak credit standards and features like prepayment penalties, interest-only payments, balloon payments and negative amortization, the subprime mortgage space was not concerned about the borrowers’ ability to repay the mortgage. Jeff Lazerson, Oc Register, 7 May 2026 Left unsaid was the fact that Steyer’s firm had extensive financial ties to San Diego’s Accredited Home Lenders, one of the biggest subprime mortgage lenders in the country. Los Angeles Times, 6 May 2026 Going back to 1990, the only other period in which the ratio was that high was 2005, at the height of the subprime bubble. Jessica Guynn, USA Today, 29 Apr. 2026 Large investment firms such as Blackstone entered the single-family housing industry after the subprime mortgage crisis in 2007 . Nathaniel Meyersohn, CNN Money, 24 Apr. 2026 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 13 May. 2026.

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

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