Down payments are designed to reduce the likelihood of default on mortgage loans.

Name: Down payments are designed to reduce the likelihood of default on mortgage loans.
Brand: Quizplus
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Question

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Down payments require borrowers to put money towards the purchase of the home, which reduces the overall amount of the loan. This leads to smaller monthly payments and less risk of default since borrowers have invested their own money into the property.

Down Payments Are Designed to Reduce the Likelihood of Default