Respuesta :

potential interest rate based on bank (lender) risk
monthly payment and term (length of the loan payments)

The value of collateral or down payment affect the:

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

What is a collateral or down payment?

These means the initial deposit or transfer of ownership that are required to secure a loan facility.

However, these value of collateral or down payment affect the amount borrowed, interest rate and lender's perceived risk.

Read more about collateral

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