Question

what is a down payment?
choose the correct answer below.
a. a long-term installment loan for the purpose of buying a home
b. a mortgage with the same monthly principal and interest payment during the entire time of the loan
c. the portion of the sale price of the home that the buyer initially pays to the seller
d. the difference between the sale price and the portion of the sale price of the home that the buyer initially pays to the seller

Explanation:

A down payment is the upfront sum a buyer pays directly to the seller when purchasing a high-value asset like a home, reducing the loan amount needed. Option A describes a mortgage loan, option B is a fixed-rate mortgage, and option D is the loan amount, not the down payment.

Answer:

C. The portion of the sale price of the home that the buyer initially pays to the seller