Given the following information, calculate the cash down payment required to purchase the specific property. Purchase Price: $500,000, Loan Amount: 80% of purchase price, Up-front financing costs: 2.5% of loan amount.

Question

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The cash down payment is 20% of the purchase price ($500,000), which is $100,000. The up-front financing costs are 2.5% of the loan amount (80% of $500,000 = $400,000), which is $10,000. Therefore, the total cash required is $100,000 + $10,000 = $110,000.

Given the Following Information, Calculate the Cash Down Payment Required