ISSUE #1: How much you actually borrow?

Suppose you plan to buy your first house. It costs $200,000, but requires a 5% down payment.

(a) How much is the down payment?

(b) Does this amount increase or decrease the amount you have to borrow?

(c) How much is the starting balance on your house loan (also called a mortgage)?

ISSUE \#1: How much you actually borrow? Suppose you plan to buy your first house. It costs $200,000, but requires a 5% down payment. (a) How much is the down payment? (b) Does this amount increase or decrease the amount you have to borrow? (c) How much is the starting balance on your house loan (also called a mortgage)