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GLOSSARY
Subcontractor
A person or company that does specialty work for a general contractor.
Subindex
Subindex is a set of securities that comprise one specialized group of securities, and are also part of a more general group. An example is the Dow Jones Agricultural Sub-Index (DJAIGAG).
Subject property
The home that you intend to obtain the mortgage on.
Submortgage
A submortgage is a loan taken by a mortgage lender, where a customer's mortgage (which was made by the lender) is pledged as the collateral.
Subordinate financing
Subsequent mortgage to the first one on the property when a new loan is taken out.
Subordinate loan
Mortgage whose priority is below that of another mortgage, like a second or third mortgage or a home-equity loan
Subordinated
Subordinated describes a debt obligation that has a lower priority claim relative to senior creditors. The term can also describe the credit that's owed the lower priority debt. If a liquidation is required, the subordinated creditors are paid with any funds left after the senior creditors have been paid.
Subordinated debt
Subordinated debt is a debt obligation that has a lower priority claim relative to senior debt. If a liquidation is required, the creditors holding subordinated debt (also called subordinated creditors) are paid with any funds left after the senior creditors have been paid.
Subordination clause
A subordinated clause is language found in certain mortgage agreements and bond indentures that automatically gives the current debt a higher priority claim over any debt that may be issued thereafter.
Subprime
Subprime describes borrowers or loans that are less-than-ideal. A subprime borrower, for example, usually has a low credit score. A subprime loan is a debt obligation that doesn't meet conservative underwriting standards, either because of the borrower's qualifications, or the structure of the debt itself.
Subprime borrower
Subprime borrower is a debtor who has a low credit score due to poor management of credit accounts in the past.
Subprime credit card
Subprime credit card is a revolving credit account provided to individuals who have low credit scores, such that they don't qualify for a conventional credit card. A subprime credit card will have a much higher interest rate than would be typical on a conventional credit card.
Subprime lender
A subprime lender is a financial institution that specializes in making loans to lesser-qualified borrowers. Subprime lenders charge more to make these loans, because there's a higher risk of default.
Subprime loan
A subprime loan is a debt obligation made to a lesser-qualified borrower. The subprime loan is typically characterized by a higher interest rate and more restrictive terms relative to a conventional loan of a similar type.
Subprime mortgage
Subprime mortgage is a real estate property loan made to a lesser-qualified borrower. A subprime mortgage carries a higher interest rate and more restrictive terms relative to a conventional (also called prime) mortgage. Borrowers of subprime mortgages generally have low credit scores and past documented credit issues.