Subprime Mortgage Definition
Subprime Mortgage is a type of loan granted to borrowers with low creditworthiness, who cannot qualify for conventional mortgages. The lender often charges interest on subprime mortgages at a higher rate, because subprime borrowers present a higher risk. Therefore, it is recommended for people who have a bad credit record to wait for a period of time and build up their scores before applying for a loan to ensure they are eligible for a conventional mortgage.