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What does the value of collateral or down payment affect? Check all that apply.
Othe amount borrowed
O the interest rate
the lender's perceived risk
O the repayment schedule
the credit cards available



Answer :

GinnyAnswer

Final answer:

The value of collateral or down payment affects the amount borrowed and the lender's perceived risk.


Explanation:

The value of collateral or down payment affects:

  • the amount borrowed: The more collateral or down payment provided, the higher the amount that can be borrowed.
  • the lender's perceived risk: Higher collateral or down payment reduces the risk for the lender.

For example, if a borrower offers a house as collateral for a loan, the lender may be more willing to lend a larger amount due to the lower risk involved.


Learn more about collateral and down payment impact on loans here:

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