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LSDefine

Simple English definitions for legal terms

subprime loan

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A quick definition of subprime loan:

A subprime loan is a type of loan given to people who are considered riskier borrowers because they have poor credit histories or low income. Because of this increased risk, lenders charge higher interest rates to compensate. This means that subprime borrowers end up paying more for their loans than people with better credit scores or more collateral.

A more thorough explanation:

A subprime loan is a type of loan that is offered to borrowers who have a poor or limited credit history. These borrowers are considered to be riskier than prime borrowers, who have a good credit history and are more likely to repay their loans on time. As a result, subprime loans come with higher interest rates and fees to compensate for the increased risk.

  • A borrower with a low credit score applies for a car loan and is offered a subprime loan with an interest rate of 15%, while a borrower with a high credit score is offered a prime loan with an interest rate of 5%.
  • A borrower with a history of missed payments applies for a mortgage and is offered a subprime loan with a higher interest rate and fees than a borrower with a history of on-time payments.

These examples illustrate how subprime loans are offered to borrowers who are considered to be higher risk due to their credit history or financial situation. The higher interest rates and fees charged by lenders help to offset the risk of default and potential losses.

Subpoena duces tecum | subprime mortgage

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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