Access Point #: SS.912.FL.4.AP.4


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Describe the benefits of making a down payment on a loan.
Number: SS.912.FL.4.AP.4 Category: Access Points
Date Adopted or Revised: 05/23 Standard: Using Credit

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SS.912.FL.4.4 (Discontinued after 2023-2024): Describe why people often make a cash payment to the seller of a good—called a down payment—in order to reduce the amount they need to borrow. Describe why lenders may consider loans made with a down payment to have less risk because the down payment gives the borrower some equity or ownership right away and why these loans may carry a lower interest rate.



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