Question

Gerald bought a home for $300,000. His largest up–front cost is 10 percent, or $30,000. What is this cost called?

Answer 1

The cost is called DOWN PAYMENT. The down payment is an initial payment you have to make when buying something on credt.

The down payment varies depending on the price of what you're buying and not all credits require a down payment. As an example, I'm attaching an example of a phone you can buy on credit and no downpayment is required.

The down payment is expressed in percentage of the total cost of the item/property you're buying. In Gerald's case, the down payment was 10% of the total value of the house.