Question

Julie doesn't have any money for a house downpayment. How should she expect this to affect the cost of her credit? choose two

A.
She will pay less interest over the loan term.

B.
She will pay more interest over the loan term.

C.
She will pay more principal over the loan term.

D.
She will pay less principal over the loan term.

Answer 1

B and C

Without a down payment the loan amount is larger, so she will repay more principal overall and pay more interest over the life of the loan (interest is charged on the larger balance).