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2. Mortgage classifications and borrower creditworthiness Suppose Deborah is planning to purchase a home and in her mortgage application, she declares that she plans to

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2. Mortgage classifications and borrower creditworthiness Suppose Deborah is planning to purchase a home and in her mortgage application, she declares that she plans to put a 40 percent down payment on the home. Additionaliy, Deborah's debt-to-income ratio and credit score are 9 percent and 815 , respectively. Assuming that Deborah's mortgage application is accepted by the lender, how would her mortgage likely be classifled? Federally insured mortgage Fixed-rate mortgage Prime mortgage Subprime mortgage Suppose Van, Amy, and Carios are looking to purchase homes in Los Angeles, and they all happen to find exactly the home they are looking for within a mile of one another, each costing $710,000. None of the homeowners have enough cash to purchase their selected home outright, so each of them needs to submit a mortgage application in order for their lender to determine whether or not the borrower will be able to repay the mortgage loan. Suppose Van, Amy, and Carlos all use Quicken Loans as their lender and that they all submit their mortgage applications at the same time. The following table shows: (1) the amount that each borrower suggests they will put as a down payment on their home, (2) each borrower' debt-toincome ratio, and (3) each borrower's credit score. Wring the information in the table, answer the question that follows. Suppose Van, Amy, and Carlos are looking to purchase homes in Los Angeles, and they all hoppen to find exactly the home they are looking for within a mile of one another, each costing $710,000. None of the homeowners have enough cash to purchase their selected home outright, so each of them needs to submit a mortgage application in order for their lender to determine whether or not the borrower will be able to repay the mortgage loan. Suppose Van, Amy, and Carlos all use Quicken Loans as their lender and that they all submit their mortgage applications at the same time. The following table shows: (1) the amount that each borrower suggests they will put as a dowo payment on their home, (2) each borrowers' debt-toincome ratio, and ( 3 ) each borrower's credit score. Using the information in the table, answer the question that follows. Given the information in the table, which of the three borrowers has the weakest mortgage application? Van Amy Carios

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