Which of the following scenarios would typically lead to a higher mortgage interest rate for a borrower?

Question: Which of the following scenarios would typically lead to a higher mortgage interest rate for a borrower?

Answer options:

• A high credit score.
• A large down payment (e.g., 30%).
• A short amortization period (e.g., 15 years). ✅ A low beacon score (e.g., below 600).

Correct answer: A low beacon score (e.g., below 600).

Explanation: A low credit (beacon) score indicates higher risk to lenders, who typically compensate for this increased risk by charging higher interest rates. The other options generally lead to better rates.