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A subprime mortgage is ________.

a high-risk, high-interest loan
a federal bailout for major banks
a form of insurance on investments
a form of political capital

1 Answer

1 vote

Answer:

High-risk, high-interest loan.

Step-by-step explanation:

The classical definition of a subprime mortgage is concerned to borrowers with lower credit ratings and it normally carries a higher interest rate.

It is good emphasize that these loans carry higher interest rate justified by the the greater risks associated with buyers that have poor credits.

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