Which of the following benefits is associated with making a larger down payment?

Making a larger down payment is beneficial for several reasons, primarily related to reducing the financial burden associated with a loan. When a borrower opts for a larger down payment, it lowers the principal amount that needs to be financed. This directly leads to lower monthly payments because the loan amount decreases—the borrower is taking out a smaller mortgage.

Additionally, lenders often reward borrowers who make larger down payments by offering them better interest rates. This is because a larger down payment reduces the lender's risk, as the borrower has more equity in the property from the start. Less risk can lead to more favorable loan terms, making the overall cost of borrowing more manageable.

In contrast, other choices highlight scenarios that typically do not align with the conditions surrounding larger down payments. For example, higher monthly payments and increased fees usually correspond with smaller down payments, which can result in a higher loan amount and possibly require private mortgage insurance (PMI). Immediate cancellation of all mortgage payments and guaranteed loan approval are not practical benefits that correlate with the size of a down payment.