How would a bigger down payment be beneficial to borrowers?

a. a bigger down payment is only beneficial for a person applying for a home loan.

b. a bigger down payment is essentially a bribe to the dealership, guaranteeing a few extra bells and whistles for free.

c. a bigger down payment means that the borrower has more money, and can afford a bigger loan.

d. a bigger down payment is money paid toward principal, interest free, which also decreases the amount paid monthly.

Option D is correct answer

Step-by-step explanation:

Given are 4 options and we have to select the one which is beneficial to borrowers.

Option a is not right because here applicable only for home loans.

Option b is wrong because down payment is certainly not a bribe

Option c is wrong because down payment is a certain portion of total loan, or price of good paid towards principal, which reduces equal monthly instalments.

Hence option d

A bigger down payment is money paid toward principal, interest free, which also decreases the amount paid monthly.

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