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?

When we invest ourselves into a project or a team, its our expertise and skills that we put in that project etc, works as Downpayment for it. When it comes to relation other than professional relationship like friendship then its our loyalty, behavior and understanding with that person that makes him/her reliant on us.

Explanation:

A down payment is a kind of installment made in real money during the beginning of the acquisition of a costly decent or administration. The installment speaks to a level of the full price tag; at times, it is not refundable if the arrangement falls through due to the buyer. Mostly, the buyer makes financing game plans to cover the rest of the sum owed to the merchant.

Calculating a down payment is frequently a confusing undertaking. There are a few territories where more careful thought than others are is required. Initial installments additionally offer loan specialists a specific level of affirmation.

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