Question

The cost of a home you want to purchase is $ 300,000.00. To qualify for a mortgage, your lender wants a 10 % down payment. Your mortgage interest rate is 3 % for 25 years and you have to pay 2 points. A. How much money do you need for the down payment?

Answer 1

The down payment required for a $300,000 home at 10% is $30,000.

Step-by-step explanation:

Certainly! The down payment is a percentage of the home's cost that the buyer pays upfront when purchasing a property. In this case, the cost of the home is $300,000.00, and the lender requires a 10% down payment.

To calculate the down payment amount:

Down payment = Percentage x Home Cost

Substitute the given values:

Down payment = 0.10 x $300,000.00

Down payment = $30,000.00

So, you would need $30,000.00 as a down payment to qualify for the mortgage on a $300,000.00 home.