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What does subprime mean?

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I think it means Lending money to people who have bad credit at a lower interest rate ex; ARMS. and then when interest rates go higher , these people can't afford there payments, and end up in forecloseure

Some of these loans were 100%+ financing. Meaning if the price of the house drops by 1% the owner would be in the red. If they ever sold the property at a lower price they would not be able to cover the cost of the loan.

First answer by ID1122322921. Last edit by SHKO. Contributor trust: 2 [recommend contributor ]. Question popularity: 24 [recommend question].

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