The true statement from the options provided is:
The more you owe, the higher your interest payment will be.
This is because interest payments are typically calculated as a percentage of the amount owed (the principal). As the amount borrowed increases, so do the interest payments, assuming the interest rate remains constant.
The other statements are not true or are misleading:
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When shopping for a loan, you need to compare only APRs. This is inaccurate because while the Annual Percentage Rate (APR) is important, you should also consider other factors like fees, loan terms, and features.
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There is no reason to pay off a loan early. This is not necessarily true as paying off a loan early can save on interest payments, but it may depend on the loan’s terms and any prepayment penalties.
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You can save money by making the smallest down payment the lender will allow. This statement is misleading as a smaller down payment often means higher monthly payments and potentially more interest paid over the life of the loan. A larger down payment usually results in lower loan amounts and less interest.