Required Cash
Categories: Accounting
Buying a house is never easy. Besides the down payment (the bigger, the better), you’ll also need to make sure you cover closing costs.
Closing costs are all the little things that add up: title insurance (so you can prove you own the place later), mortgage underwriting (writing the loan), home inspectors (who make sure the house isn’t made of paper or infested with deadly black mold), and others all need to be paid. And you need all these things to buy the home.
The amount of cash you need to buy a house is “required cash.” But you’re taking out a loan, because you don’t have cash. Ugh. Yeah. It takes money to make money, and it takes money to earn equity, too. Required cash-money, that is...a.k.a. “cash to close.”
Required cash also refers to how much money you need to complete a refi (refinance). While it does take money, people often refinance to save money in the long run. For example, if your home has gained equity from a perky market or because you remodeled the bathroom, you could get out of private mortgage insurance earlier than before refinancing. Other times, people refinance to extend their loan. The joys of homeownership.
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Finance: What is a Down Payment?0 Views
Finance a la shmoop what is a down payment? Oh people cheer up this is just
the start of payments the down payment is only the beginning so here's the gist
yep John and Mary were tired of strolling [John and Mary walking with a baby]
around with their baby especially in the cold winter Bethlehem air so they
started to look for a nice starter home condo only condos hadn't really become a
thing back then so they found a little lean-to shack in the village of rumpa [Shack appears]
pum pum which sold for 524 holyland dollars they made a down payment of a
hundred bucks courtesy of the gifts they received on the you know the big birth
IPO they auctioned off the frankincense myrrh and Johnny jump up sold them on
eBay no tax so that they got them the hundo holy landers then they took out a
loan for four hundred twenty-four dollars from the three wise men bank at
5% interest and finally well they were able to move in and have a steady stable [John and Mary by the shack]
home with a mortgage payment of about three bucks a month and they paid it all
off overtime and everything went smoothly for the baby Jesus after then...