Asked by j
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.
Explanation: A larger down payment reduces the loan amount (and often the need for private mortgage insurance and can secure better terms), which lowers monthly mortgage payments and total interest paid over the loan.
Explanation: A larger down payment reduces the loan amount (and often the need for private mortgage insurance and can secure better terms), which lowers monthly mortgage payments and total interest paid over the loan.
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