Question

Gerald bought a home for $300,000. His largest up–front cost is 10 percent, or $30,000. What is this cost called?

Answer 1

It is called 'down payment'.

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Answer 2

Answer:

The answer is down payment.

Step-by-step explanation:

Gerald bought a home for $300,000. His largest up–front cost is 10 percent, or $30,000.

This cost is called down payment.

Down payment is an amount in cash that is given while purchasing a home. This lies between 5% to 20% of the purchase price.

This payment reduces the amount of money you will have to borrow from banks. Each loan requires some sort of down payment.