John would like to move from the city into the suburbs and has been saving up a large down payment for a home. which is the most cost effective way for john to buy a house in the suburbs?

The higher the downpayment John pays towards his house, then the less he will have to pay towards a mortgage and easier it will be for him to obtain a loan for the house. If he is able to put down 20% of the house cost then it will be more cost effective for him in the long term as he will then have less to pay back to the loan company and then can pay back the loan over a shorter term with less interest.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

The government cuts taxes