Question

Jim and Jennifer have excellent credit, and they purchased property with a mortgage. soon, they experienced financial difficulty and were late on one payment. however, all subsequent payments have been on time. which of the following is the most probable consequence of Jim and Jennifer's late payment?

Option 1: A slight decrease in their credit score.
Option 2: No significant consequences.
Option 3: A decrease in their credit limit.
Option 4: A decrease in their interest rate on the loan.

Answer 1

The most likely consequence of a single late mortgage payment for Jim and Jennifer, who have otherwise excellent credit, would be a slight decrease in their credit score. Repeated late payments could have more severe consequences.

Step-by-step explanation:

The most probable consequence of Jim and Jennifer's late payment on their mortgage, assuming all other payments have been on time, is Option 1: A slight decrease in their credit score. Late payments can impact a borrower's creditworthiness, as they may appear less likely to repay a loan on time. However, if subsequent payments are made regularly, the effect on the credit score may be minor. A late payment will not typically result in a decrease in the borrower's interest rate on the loan or a decrease in their credit limit unless it becomes a repeated behavior.