Which statement is true of both mortgages and auto loans? They are riskier than student loans for lenders. They do not require a

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3 years ago

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Which statement is true of both mortgages and auto loans? They are riskier than student loans for lenders. They do not require a

minimum payment. They are secured loans and generally require a down payment. They have higher interest rates than credit cards.

SAT

1 answer:

sattari [20] · Answer 1 · 2022-12-06T22:58:34+03:00

Mortgage and Auto-loans are both secured loans and generally require a down payment.

Let understand that Secured Loans means loans that requires collateral as a condition of borrowing.

Mortgage loans are secured loan because the house serves as collateral security and the lender is authorize to take back the house if the borrower defaults.

Auto loans are secured loans because the vehicle itself is used as a collateral and if the borrower defaults, the lender take the car.

In conclusion, both the Mortgage and Auto loans generally requires a down payment as well as continuous interval payment to gradually pay off the remaining outstanding loan balance.

Reead more on the Loans here

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