Lenders tend to like to see borrowers put down large down payments for loans because this is seen as increasing the borrower's desire to pay off the loan since the borrower now has equity in the collateral.

Question

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Lenders prefer larger down payments because it decreases their risk and increases the borrower's stake in the loan, which makes them more committed to repayment.

Lenders Tend to Like to See Borrowers Put Down Large