Question

A loan offered at a rate above the normal rate, due to the borrower's low credit rating, is known as what?

A. Subprime
B. Lien
C. Bankruptcy
D. Prime

Answer 1

A. Subprime Mortgage

Step-by-step explanation:

A subprime mortgage is one that's normally issued to borrowers with low credit ratings. A prime conventional mortgage isn't offered because the lender views the borrower as having a greater-than-average risk of defaulting on the loan.