Question

(plsss help<3) Which of the following BEST describes the effect of the down payment amount?

-the higher the down payment,the lower the monthly payments

-these two do not affect one another

- the higher the down payment, the higher the monthly payment

Answer 1

the higher the down payment, the lower the monthly payments

Step-by-step explanation:

this is because the down payment reduces the principal amount that needs to be borrowed, and therefore, the amount of interest that accrues over the life of the loan. as a result, the monthly payments are lower. this also applies to most types of loans, not just mortgages. so, the first option is correct.

(also ur pfp is so pretty)