11
QuizMultiple Choice

Mortgages

Question 11 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

What is the portion of a home's purchase price paid in cash and is not part of the mortgage loan?

Answer
A
principal
B
insurance
C
taxes
D
down payment

Explanation

A down payment is the portion of the home’s purchase price paid upfront in cash rather than borrowed through the mortgage. The remaining amount is generally financed by the mortgage loan, so the correct choice is “down payment.”

AI-written and checked against the verified answer.

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