Let's analyze each statement to determine which is true:
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There is no reason to pay off a loan early. - This statement is generally false. There can be reasons to pay off a loan early, such as saving on interest payments or improving credit scores.
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The more you owe, the higher your interest payment will be. - This statement is typically true. Most loans calculate interest based on the outstanding principal balance, so if you owe more, your interest payments will also be higher.
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You can save money by making the smallest down payment the lender will allow. - This statement is misleading. While making a smaller down payment may allow you to keep more cash on hand, it often leads to higher interest payments and mortgage insurance, which can cost you more in the long run.
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When shopping for a loan, you need to compare only APRs. - This statement is false. While the APR (Annual Percentage Rate) is important, there are other factors to consider when comparing loans, such as fees, payment terms, and overall costs.
Based on this analysis, the true statement is:
The more you owe, the higher your interest payment will be.