Response to the following questions:
1. Explain the difference between a fixed-rate mortgage and an adjustable-rate mortgage. Include a discussion of mortgage borrowers' versus mortgage lenders' preferences for each.
2. What is a jumbo mortgage?
3. What is a subprime mortgage? What instrumental role did these mortgages play in the recent financial crisis?
4. What is an option ARM? What are the different options available with this type of mortgage?