A home buyer is purchasing a home that costs $250,000. Cash in the amount of $50,000 was paid. A loan will be used to pay for the remaining cost of the house. Based on this information, which of the following is true?
Responses
The down payment is $200,000.
The down payment is $200,000.
The buyer will need a mortgage in the amount of $250,000.
The buyer will need a mortgage in the amount of $250,000.
The amount of the collateral is $50,000.
The amount of the collateral is $50,000.
The down payment is $50,000.