A _____ is targeted to borrowers with low credit scores, high debtto income ratios, or other signs of a reduced ability to repay the money they borrow.
A) home equity line of credit
B) revolving line of credit
C) fixedrate mortgage loan
D) subprime mortgage loans

Question

A _____ is targeted to borrowers with low credit scores, high debt­to­ income ratios, or other signs of a reduced ability to repay the money they borrow.
A) home equity line of credit
B) revolving line of credit
C) fixed­rate mortgage loan
D) subprime mortgage loans

Quizplus · Accepted Answer

Subprime mortgage loans are specifically designed for individuals who have a lower credit score, high debt-to-income ratio, or other indications of a reduced ability to repay their loans. These loans often come with higher interest rates and less favorable terms, making them a riskier option for borrowers.

A _____ Is Targeted to Borrowers with Low Credit Scores