What is 'Subprime'
Subprime is a classification of borrowers with a tarnished or limited credit history. Lenders will use a credit scoring system to determine which loans a borrower may qualify for. Subprime loans carry more credit risk, and as such, will carry higher interest rates as well. Approximately 25% of mortgage originations are classified as subprime.
BREAKING DOWN 'Subprime'
Occasionally some borrowers might be classified as subprime despite having a good credit history. The reason for this is because the borrowers has elected to not provide verification of income or assets in the loan application process.
The loans in this classification are called stated income and/or stated asset (SISA) loans or even no income/no asset (NINA) loans.
A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...