Finance
A Kentucky buyer with a credit score of 650 is applying for a conventional mortgage. Compared to a buyer with a 780 score, the 650-score buyer will likely:
AReceive the same interest rate because rates are standardized
BReceive a higher interest rate due to greater perceived risk✓ Correct
CBe automatically disqualified from conventional financing
DReceive a lower rate as a first-time buyer incentive
Explanation
Credit scores directly affect mortgage interest rates. Lower credit scores indicate higher risk to lenders, resulting in higher interest rates and fees through risk-based pricing.
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