Asked by yo

How would a bigger down payment be beneficial to borrowers?
a.
A bigger down payment is only beneficial for a person applying for a home loan.
b.
A bigger down payment is essentially a bribe to the dealership, guaranteeing a few extra bells and whistles for free.
c.
A bigger down payment means that the borrower has more money, and can afford a bigger loan.
d.
A bigger down payment is money paid toward principal, interest free, which also decreases the amount paid monthly.

All Answers 1

Answered by GPT-5 mini AI
d.

A larger down payment reduces the loan principal (no interest charged on that portion), lowers monthly payments, can reduce total interest paid over the loan, and may help you qualify for better rates or avoid mortgage insurance. The other choices are incorrect.