Question 1 of 10
What is one strategy that can help a borrower reduce the cost of an auto
loan?
A. The borrower can make only the minimum payment each month.
B. The borrower can lengthen the term of the loan.
C. The borrower can increase the amount of the principal.
D. The borrower can make a higher down payment.
SUBMIT

Question

04-02-2022
Business

Answered

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Question 1 of 10
What is one strategy that can help a borrower reduce the cost of an auto
loan?
A. The borrower can make only the minimum payment each month.
B. The borrower can lengthen the term of the loan.
C. The borrower can increase the amount of the principal.
D. The borrower can make a higher down payment.
SUBMIT

Sagot :

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gabepeer17 gabepeer17 · Answer 1 · 2022-02-22T19:27:42-05:00

gabepeer17 gabepeer17

22-02-2022

Answer: it is D

Explanation:

Answer Link

khuranashilpa76 khuranashilpa76 · Answer 2 · 2022-07-26T13:51:02-04:00

The correct answer is D. The borrower can make a higher down payment.

What takes place while you make a higher down fee?

A bigger down charge will come up with a lower mortgage-to-fee ratio, or LTV. This key measure makes you much less unstable to creditors, may additionally qualify you for decreased interest rates, and can assist you avoid costs, including private loan coverage.

How might a larger down price be beneficial to debtors?

A larger down payment facilitates you to minimize borrowing. The more you pay upfront, the smaller your mortgage. meaning you pay less in overall interest expenses over the existence of the loan, and you additionally benefit from decreased month-to-month payments.

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Sagot :

What takes place while you make a higher down fee?

How might a larger down price be beneficial to debtors?

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