Mary is an African American woman who wanted to buy a home, but did not qualify for a traditional mortgage. She had no choice but to take a high interest rate loan, which initially she was able to afford but then the interest rates doubled and she was forced to foreclose. What type of loan did Mary likely have?

Question

Quizplus · Accepted Answer

A subprime loan is typically offered to borrowers who do not qualify for traditional mortgages due to poor credit history, low income, or other factors. These loans often come with higher interest rates and less favorable terms, making them riskier for borrowers. In Mary's case, it seems likely that she was forced to take a subprime loan due to being unable to qualify for a traditional mortgage.

Mary Is an African American Woman Who Wanted to Buy