what does the value of collateral or down payment affect? check all that apply.\n□ the amount borrowed\n□…

what does the value of collateral or down payment affect? check all that apply.\n□ the amount borrowed\n□ the interest rate\n□ the lenders perceived risk\n□ the repayment schedule\n□ the credit cards available

what does the value of collateral or down payment affect? check all that apply.\n□ the amount borrowed\n□ the interest rate\n□ the lenders perceived risk\n□ the repayment schedule\n□ the credit cards available

Answer

Brief Explanations:

  • A higher - value collateral or down - payment can reduce the amount the borrower needs to borrow.
  • It can lower the lender's perceived risk as there is more security. A lower risk may lead to a lower interest rate. However, the repayment schedule is mainly determined by the loan agreement terms and not directly by collateral/down - payment value. And the availability of credit cards is not directly related to collateral or down - payment for a particular loan.

Answer:

  • the amount borrowed
  • the interest rate
  • the lender's perceived risk