Subprime mortgage loans are so named because the rates charged are below the prime interest rate.

Name: Subprime mortgage loans are so named because the rates charged are below the prime interest rate.
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Subprime mortgage loans are named so because they are offered to borrowers who have a low credit score, a high debt-to-income ratio or other risk factors. The interest rates charged on these loans are typically higher than the prime interest rate.

Subprime Mortgage Loans Are So Named Because the Rates Charged