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By: Cameron Bennett and Xander Madere

Down Payment

The part of a price that is paid at the time of buying on the installment plan. This could also be a percentage of the total cost of the house paid a the time of the purchase, to their lender. Some lenders do not ask for a down payment, but others ask for 30%. The more money, the less you have to borrow.

Closing Cost

Fees and expenses paid to complete the transfer of ownership of a home.

Mortgage Loan

The balance of the purchase (after the down payment) is usually taken with a bank or other lender. The money that is borrowed is called the principal. Mortgage includes interest that must be paid on the loan. A mortgage loan is a paper signed by a borrower that gives the lender the right to ownership of property if the borrower does not pay the principal or interest.

Renting vs. Owning

While owning, you live on your own property and have to pay off the mortgage. When you rent, you live on someone else's property.