The low introductory interest rates offered by subprime lenders are called:
A)"low-ball rates."
B)"teaser rates."
C)"adjustable rates."
D)"Home Pride rates."

Question

Quizplus · Accepted Answer

The term used for low introductory interest rates offered by subprime lenders is "teaser rates." This is because these rates are intended to entice borrowers with less-than-ideal credit to take out a loan, but eventually increase after a certain period of time to a higher rate.

The Low Introductory Interest Rates Offered by Subprime Lenders Are