7
QuizMultiple Choice

Mortgages and Home Ownership — Unit test

Question 7 • Personal Finance - EL3403

A borrower with bad credit is likely to be charged

Answer
A
a low interest rate.
B
a high interest rate.
C
no interest rate.
D
higher property taxes.

Explanation

Lenders see borrowers with bad credit as more likely to miss payments, so they charge more to compensate for the added risk. The borrower is therefore likely to pay a high interest rate. Property taxes are set by local governments, not by a borrower’s credit score.

AI-written and checked against the verified answer.

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