Read the scenario. Casey has been saving for a new car and is ready to make a purchase. Having a substantial amount to put down as a down payment, Casey approaches the car dealership. The salesperson and the loan officer view Casey's willingness to make a high down payment positively. Why would Casey be considered a lower risk by the lender for planning to make a high down payment? It shows that Casey prefers a high-interest rate. It shows that Casey is committed to paying off the loan. It sh
Answer (1)
Why is Casey a low-risk borrower with a high down payment?It shows that Casey is committed to paying off the loan.A large down payment shows financial responsibility, lowers loan amount, and reduces the lender’s risk. It means Casey is likely to complete payments on time.
