Question

Juan and mandy have found their dream home! it’s a bit of a fixer-upper, but they got it for a great price. the cost of the house is going to be $125,000. they will put down 5% for a down payment. 1. determine the down payment.

Answer 1

Juan and Mandy's down payment for their dream home, which costs $125,000, would be 5% of that amount, equating to $6,250.

Step-by-step explanation:

Juan and Mandy's plan to buy their dream home for $125,000 involves a down payment of 5%. Calculating the down payment is a straightforward process that requires multiplying the total cost of the home by the decimal equivalent of the percentage. In this case, the down payment is 5%, which is expressed as 0.05 in decimal form.

The calculation is performed by multiplying the home's cost ($125,000) by the decimal equivalent of the percentage (0.05): $125,000 × 0.05 = $6,250.

Therefore, Juan and Mandy's down payment for their dream home would amount to $6,250.

This down payment serves as an initial upfront payment made by the buyers, representing a percentage of the total home cost. It is a common practice in real estate transactions and is a crucial component in determining the mortgage amount needed to finance the remaining cost of the home. The ability to make a down payment influences mortgage terms, interest rates, and overall affordability for homebuyers. In this scenario, the calculated down payment of $6,250 reflects 5% of the home's total cost, allowing Juan and Mandy to take a significant step toward realizing their dream of homeownership.