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.
The investor, who famously predicted and profited from the subprime mortgage crisis in 2008, also reiterated his broader concerns about semiconductor valuations. Yun Li, CNBC, 30 June 2026 From June of 2004 to July of 2006, as the subprime bubble was inflating, the Fed raised the interest rate 17 times consecutively – a textbook policy of monetary tightening, unprecedented at the time, which should have restrained credit creation. George Calhoun, Forbes.com, 26 June 2026 Renting also has become a way for low- and moderate-income Americans to avoid subprime mortgages with high interest rates that can change, Parsons said. Jacqueline Munis, Fortune, 24 June 2026 Greenspan was also criticized for enacting policies that contributed to the subprime mortgage crisis that led to the recession at the end of the 2000s. Victoria Edel, PEOPLE, 22 June 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 7 Jul. 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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