New Jersey Real Estate Practice Exam Free Practice Question
A home is being purchased for $275,000. The buyer agrees to an 80% loan, what amount will the buyer have to have to meet the down payment requirements?
Correct Answer: C
Rationale: To determine the down payment, calculate 20% of the home's purchase price since the buyer is financing 80%.
First, find 20% of $275,000:
0.20 × $275,000 = $55,000.
This amount represents the down payment required.
Option A ($45,000) is incorrect as it underestimates the required down payment.
Option B ($50,000) is also incorrect, as it does not meet the 20% requirement.
Option D ($60,000) exceeds the necessary down payment, making it incorrect.
Thus, $55,000 is the accurate down payment amount needed for the purchase.
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