Question

. (01.10 MC)

Which of these is the most likely to happen when a borrower puts a large down payment on a loan? (4
The lender has a reason to increase interest rates.
The lender views the borrower as lower in risk.
The lender will wonder if there has been an illegal business transaction.
The lender assumes the borrower will default on the loan in the future.
10. (01.10 HC)

Answer 1

When a borrower puts a large down payment on a loan, the lender views the borrower as lower in risk, resulting in potential benefits for the borrower.

Step-by-step explanation:

When a borrower puts a large down payment on a loan, the most likely outcome is that the lender views the borrower as lower in risk. A large down payment indicates that the borrower has a significant stake in the loan and is less likely to default. This lowers the risk for the lender and may result in more favorable loan terms such as lower interest rates.

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