select the correct answer. caleb is applying for a loan that requires no down payment. which statement is…

select the correct answer. caleb is applying for a loan that requires no down payment. which statement is true? a. if caleb makes a down payment, it will lower the total cost of the loan. b. if caleb makes a down payment, it will raise the total cost of the loan. c. if caleb makes a down payment, it will increase the loan term. d. making a down payment has no effect on the total cost of the loan.

select the correct answer. caleb is applying for a loan that requires no down payment. which statement is true? a. if caleb makes a down payment, it will lower the total cost of the loan. b. if caleb makes a down payment, it will raise the total cost of the loan. c. if caleb makes a down payment, it will increase the loan term. d. making a down payment has no effect on the total cost of the loan.

Answer

Brief Explanations:

A down - payment reduces the principal amount of the loan. With a lower principal, the interest charged over the life of the loan is less, thus lowering the total cost of the loan.

Answer:

A. If Caleb makes a down payment, it will lower the total cost of the loan.