Buying a House: Down Payments

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What is a down payment?

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A down payment is an initial payment made when purchasing a house, typically expressed as a percentage of the total purchase price.

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How do you calculate a down payment?

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To calculate a down payment, multiply the purchase price of the house by the down payment percentage (e.g., for a 15% down payment on a $200,000 house: $200,000 x 0.15 = $30,000).

Tags

CCSS.6.RP.A.3C

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What is the purpose of a down payment?

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The purpose of a down payment is to reduce the amount of money borrowed for a mortgage and to show the lender that the buyer is financially responsible.

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If a house costs $357,600 and the down payment is 15%, how much is the down payment?

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$53,640.

Tags

CCSS.6.RP.A.3C

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What is the down payment for a $269,000 house with a 15% down payment requirement?

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$40,350.

Tags

CCSS.6.RP.A.3C

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How much is a 15% down payment on a house that costs $400,673?

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$60,100.95.

Tags

CCSS.6.RP.A.3C

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What is the down payment for a house costing $281,775 with a 12% down payment?

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$33,813.

Tags

CCSS.6.RP.A.3C

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What is simple interest in the context of a mortgage?

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Simple interest is the interest calculated on the principal amount of a loan, without compounding.

Tags

CCSS.7.RP.A.3

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How do you calculate total mortgage with interest?

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To calculate total mortgage with interest, add the principal amount to the interest accrued over the loan period.

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If the simple interest on a mortgage for 5 years is 5.2%, how do you find the total mortgage amount?

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Calculate the interest using the formula: Interest = Principal x Rate x Time, then add this interest to the principal.

Tags

CCSS.7.RP.A.3