Lending institutions charge different interest rates for different classifications of mortgages. Two of these mortgage types are
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Lending institutions charge different interest rates for different classifications of mortgages. Two of these mortgage types are Alt-A mortgages and subprime mortgages. Alt-A mortgages generally carry a higher interest rate than a typical “prime rate” mortgage, and subprime mortgage rates are generally even higher than Alt-A rates. What is the likely economic justification for the higher interest rates for these two types of mortgages?
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Related Book For
Mylab Economics With Pearson Access Code For Principles Of Microeconomics
ISBN: 9780135197141,9780135197103
13th Edition
Authors: Karl E. Case; Ray C. Fair; Sharon E. Oster
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