The bank agreed to lend him $247,500, but only after checking his credit, job history, and income. This loan is a . Leo would pay it back slowly over 30 years, plus interest (the bank’s fee for lending the money).
But Mrs. Gable wanted to move closer to her grandchildren. So she decided to sell. como funciona el real estate
Leo’s down payment of $27,500 gave him control of a $275,000 asset. That’s —using a little of his own money and a lot of the bank’s money to own something big. The bank agreed to lend him $247,500, but
She listed the house for . Why $275,000 and not $150,000? Because in Fairview, more people wanted to buy homes than there were homes for sale. A new tech company had opened nearby, bringing jobs and families. That’s demand . The limited number of houses was supply . High demand + low supply = higher prices. But Mrs
Meanwhile, across town, a savvy investor named Carla was watching. She didn’t want to live in a house; she wanted to make money from one. She bought a duplex (two apartments in one building) for $350,000.
Enter Leo, a young graphic designer. Leo had saved $27,500 for a down payment (10% of $275,000). He couldn’t pay the rest in cash, so he went to a bank.