2. the franzes are purchasing a home for $195,000, and they are using a conventional loan. what is the best…

2. the franzes are purchasing a home for $195,000, and they are using a conventional loan. what is the best estimate for what their down payment will be?

2. the franzes are purchasing a home for $195,000, and they are using a conventional loan. what is the best estimate for what their down payment will be?

Answer

Explanation:

Step1: Recall down - payment percentage for conventional loans

For conventional loans, a common down - payment percentage is 20%.

Step2: Calculate the down - payment amount

The home price is $195000. We find 20% of 195000. The formula for finding a percentage $p$ of a number $n$ is $n\times\frac{p}{100}$. So, the down - payment $D = 195000\times\frac{20}{100}$. $D=195000\times0.2 = 39000$

Answer:

$39000$