Lenders consider loans made with a down payment to have less risk because the down payment gives the borrower some equity, or ownership, right away. down payments are typically in the form of cash.
think about a time in your life when you wanted or needed to prove that you were invested in something—possibly a project, a team, or even a friendship. in what way did you show your commitment and ownership? how was that similar to the way a down payment is used in a lender-borrower relationship?
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