read the scenario. jay and laura have been dreaming of purchasing their first home together. theyve been…

read the scenario. jay and laura have been dreaming of purchasing their first home together. theyve been diligently saving and have managed to accumulate a significant sum for a down payment. how does their decision to make a larger down payment benefit their financial situation as they purchase a home? it increases the interest rate on the loan. it decreases their credit score. it increases the homes value. it decreases their monthly payment.

read the scenario. jay and laura have been dreaming of purchasing their first home together. theyve been diligently saving and have managed to accumulate a significant sum for a down payment. how does their decision to make a larger down payment benefit their financial situation as they purchase a home? it increases the interest rate on the loan. it decreases their credit score. it increases the homes value. it decreases their monthly payment.

Answer

Brief Explanations:

A larger down - payment means a smaller loan amount. With a smaller loan amount, the monthly principal and interest payments are lower. Interest rate is usually determined by creditworthiness and market conditions, not down - payment size. Down - payment doesn't directly affect credit score. The home's value is determined by market factors, location, etc., not the down - payment.

Answer:

It decreases their monthly payment.