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.
Which statement is true of both mortgages and auto loans?
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The correct statement is: They are secured loans and generally require a down payment.
Explanation: Both mortgages and auto loans are secured loans, meaning they are backed by collateral (the property or vehicle). This reduces the lender’s risk because they can reclaim the asset if the borrower defaults on the loan. Additionally, both types of loans typically require a down payment, which signifies the borrower’s commitment and reduces the lender’s risk further. If you have more questions or need further clarification, feel free to ask!