Finance (alternative)
A Maryland borrower with a 680 FICO score applying for a conventional loan should expect compared to a borrower with 760 FICO:
ALower interest rates than the 760 borrower
BHigher interest rates and/or additional fees due to higher perceived credit risk✓ Correct
CThe same rate because rates are standardized
DIneligibility for conventional loans
Explanation
Credit scores directly affect mortgage pricing. A 680 FICO is considered lower risk than 760 — lenders charge higher rates and risk-based fees (loan level price adjustments) for lower credit scores.
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