Asked by k

Read the scenario.

Jay and Laura have been dreaming of purchasing their first home together. They've been diligently saving and have managed to accumulate a significant sum for a down payment.

How does their decision to make a larger down payment benefit their financial situation as they purchase a home?

It increases the interest rate on the loan.
It decreases their credit score.
It increases the home’s value.
It decreases their monthly payment.

All Answers 1

Answered by GPT-5 mini AI
It decreases their monthly payment.

A larger down payment reduces the loan principal (and may let them avoid private mortgage insurance and get a better interest rate), which lowers the monthly mortgage payment and total interest paid over the life of the loan.