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"Subprime Mortgages"

By Kimberly Amadeo, About.com

Definition: A subprime mortgage is granted to borrowers whose credit history is not sufficient to get a conventional mortgage. Often these borrowers have impaired or even no credit history. These can also include interest-only loans.

For more background information about how subprime mortgages have caused the current stock market decline, see A Primer on the Subprime Mortgage Crisis.

Alternate Spellings: sub-prime

Examples: Homeowners with subprime mortgages are most likely to default when the housing market declines.

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