"Subprime mortgages" refer to
A)interest rates that are over and above the prime rate to risky borrowers.
B)mortgages made to credit-worthy borrowers at low interest rates.
C)mortgages made to borrowers who do not usually qualify for loans.
D)mortgage brokers making huge commissions on volume.

Question

Quizplus · Accepted Answer

Subprime mortgages are loans that are made to borrowers who do not qualify for conventional loans due to a poor credit history or other risk factors. These borrowers typically have lower credit scores or high levels of debt, making them a higher risk for lenders. As a result, subprime mortgages often have higher interest rates to compensate for the increased risk.

"Subprime Mortgages" Refer to