Why do lenders often refuse to finance 100 percent ofthe cost of a purchase, requiring borrowers to make adown payment that covers a portion (typically from 10to 25 percent) of the purchase price? After all, a lendercould potentially earn more by financing the entire purchase amount

Why do lenders often refuse to finance 100 percent ofthe cost of a purchase, requiring borrowers to make adown payment that covers a portion (typically from 10to 25 percent) of the purchase price? After all, a lendercould potentially earn more by financing the entire purchase amount

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter5: Making Automobile And Housing Decisions

Section: Chapter Questions

Problem 6FPE: Calculating required down payment on home purchase. How much would you have to put down on a house...

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Question

Why do lenders often refuse to finance 100 percent of
the cost of a purchase, requiring borrowers to make a
down payment that covers a portion (typically from 10
to 25 percent) of the purchase price? After all, a lender
could potentially earn more by financing the entire purchase amount

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