Subprime mortgages:
A)carry an interest rate below the prime rate.
B)are in default.
C)are made to buyers who do not qualify for a standard mortgage.
D)can be made only by the government.

Question

Quizplus · Accepted Answer

Subprime mortgages are made to buyers who do not qualify for a standard mortgage due to their poor credit history or high debt-to-income ratio. These loans typically have higher interest rates and are considered riskier for lenders, which is why they are often associated with higher rates of default.

Subprime Mortgages