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Which of these statements is true?(1 point) Responses There is no reason to pay off a loan early. There is no reason to pay off a loan early. The more you owe, the higher your interest payment will be. The more you owe, the higher your interest payment will be. You can save money by making the smallest down payment the lender will allow. You can save money by making the smallest down payment the lender will allow. When shopping for a loan, you need to compare only APRs. When shopping for a loan, you need to compare only APRs.

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Let's analyze each statement to determine which one is true:

  1. There is no reason to pay off a loan early. - This statement is generally false. Paying off a loan early can save on interest payments, especially with high-interest loans.

  2. The more you owe, the higher your interest payment will be. - This statement is true. Interest payments are typically calculated based on the remaining balance of the loan; thus, the more you owe, the higher the interest payments will be.

  3. You can save money by making the smallest down payment the lender will allow. - This is generally false. A smaller down payment often leads to a larger loan amount, which can increase interest costs over time and may require private mortgage insurance (PMI).

  4. When shopping for a loan, you need to compare only APRs. - This statement is misleading. While the Annual Percentage Rate (APR) is an important factor, it is not the only one. Other factors, such as fees, loan terms, and specific lender conditions, should also be considered.

Based on this analysis, the true statement is: "The more you owe, the higher your interest payment will be."