What is one reason for the high interest rates for home loans offered to those with low credit ratings?

Question

Quizplus · Accepted Answer

Lenders perceive borrowers with low credit ratings as higher risk, and therefore charge higher interest rates to compensate for the increased likelihood of default. This restricted supply of loans results in higher interest rates, as there are fewer lenders willing to accept the risk of lending to these borrowers.

What Is One Reason for the High Interest Rates for Home