Question

What is a down payment?

Question 4 options:

first payment a borrower makes


cash payment made by the borrower of a percentage of the total cost


a fee paid to process the loan

Answer 1

cash payment made by the borrower of a percentage of the total cost

Step-by-step explanation:

Its usually a percentage of total cost of something large you are buying while financing the rest of the balance. Like 10% down on a $5000 car is $500 cash you put down out your pocket, while financing the remaining $4500.

Answer 2

cash payment made by the borrower of a percentage of the total cost

Step-by-step explanation:

first payment comes after the down-payment and once you start your reoccurring payments

and a fee paid to process the loan is something else not the down-payment