A subprime mortgage is a type of mortgage that is offered to borrowers with lower credit scores or less traditional financial backgrounds. These mortgages do not meet the requirements for a conventional mortgage and are usually structured as adjustable rate mortgages. The goal of subprime mortgages is to make obtaining a mortgage easier for low-income households, but they often come with higher interest rates and fees.

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A Subprime Mortgage

Question 44

Multiple Choice

A subprime mortgage

A) Made obtaining a mortgage easier for low income households
B) Is a mortgage that does not meet the requirements for a conventional mortgage
C) Is usually structured as an adjustable rate mortgage
D) All of the above
E) Is no different from a conventional mortgage

Correct Answer: