ECONOMICS
SAVING AND INVESTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Down Payment
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Mortgage
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Principal
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Interest
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Detailed explanation-1: -A down payment is a sum of money that a buyer pays in the early stages of purchasing an expensive good or service. The down payment represents a portion of the total purchase price, and the buyer will often take out a loan to finance the remainder.
Detailed explanation-2: -Lenders usually require you to pay at least 20% of the property’s purchase price as down payment. Several lenders accept less than 20% as a down payment as long as you pre-qualify for the loan. So negotiate this rate or opt for a lender who doesn’t require you to make a high down payment.
Detailed explanation-3: -Build a corpus. The simplest way to accumulate funds for your down payment is to build a corpus from your savings. Consider the ‘proportionate release’ option. Opt for a loan against your life insurance policies or provident fund. Take help of family and friends.
Detailed explanation-4: -build your savings corpus. seek proportionate release payments. borrow against your insurance policies/PPF. borrow from friends, relatives.