Final answer:
The term that describes 'The purchase price of the property plus certain closing costs such as legal fees and title insurance' is 'Closing costs'. Closing costs are additional expenses during the home buying process. Concepts like Escrow and down payment also impact the overall home buying process and related expenses.
Step-by-step explanation:
The phrase 'The purchase price of the property plus certain closing costs, such as legal fees and title insurance' refers to D. Closing costs. When buying a home, closing costs encompass a variety of expenses in addition to the purchase price of the property. These can include title insurance, legal fees, appraisal fees, and loan origination fees, among other things. An example would be if Fred buys a house for $200,000 with a down payment of $40,000 (20%) and a bank loan for the remaining $160,000. Over time, as Fred pays off his mortgage and the market value of the house increases to $250,000, his equity – the market value of the house minus what is owed – would increase.Another important concept related to home buying is Escrow, which is used to manage payments for home insurance and property taxes as part of the monthly mortgage payment. Additionally, the amount put down at the purchase of the home, commonly known as down payment, can affect the need for mortgage insurance, which protects the lender and is typically required when less than 20% of the home's price is paid upfront.