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

It is called 'down payment'.

Hope this helps! (Please rate) :)

Answer 2

The answer is down payment.

Explanation:

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

This cost is called down payment.

Down payment is an amount in cash that is given while purchasing a home. This lies between 5% to 20% of the purchase price.

This payment reduces the amount of money you will have to borrow from banks. Each loan requires some sort of down payment.