Question

Which of these statements is true?(1 point) Responses When shopping for a loan, you need to compare only APRs. When shopping for a loan, you need to compare only APRs. You can save money by making the smallest down payment the lender will allow. You can save money by making the smallest down payment the lender will allow. There is no reason to pay off a loan early. There is no reason to pay off a loan early. The more you owe, the higher your interest payment will be.

Answer 1

The true statement among the options provided is: The more you owe, the higher your interest payment will be.

This is because interest is typically calculated as a percentage of the amount owed, so if you have a higher loan balance, your interest payments will also be higher.

The other statements are misleading or false:

• When shopping for a loan, you should compare more than just APRs; other factors such as fees, loan terms, and conditions are also important.
• Making the smallest down payment may not save money in the long run due to higher interest and mortgage insurance costs.
• There can be benefits to paying off a loan early, such as reducing the total interest paid over the life of the loan.