Adjustable rate mortgages with extremely low initial interest rates which enable high risk buyers to purchase homes are known as:
A)upside down mortgages.
B)ARMs.
C)sub-prime loans.
D)mortgage backed securities.

Question

Adjustable rate mortgages with extremely low initial interest rates which enable high risk buyers to purchase homes are known as:
A)​upside down mortgages.
B)​ARMs.
C)​sub-prime loans.
D)​mortgage backed securities.

Quizplus · Accepted Answer

Sub-prime loans are designed for high-risk borrowers and often feature low initial interest rates to make them more accessible.

Adjustable Rate Mortgages with Extremely Low Initial Interest Rates Which