Required Cash


Definition of "Required Cash"

Jim Plotkin
Jim Plotkin Century 21 Wieder Realty

The total cash required of the home buyer/borrower to close the purchase plus loan transaction or the loan transaction on a refinance. Required cash includes the down payment, points and fixed dollar charges paid to the lender, any portion of the mortgage insurance premium that is paid upfront, and other settlement charges associated with the transaction such as title insurance and per diem interest.

Have a question or comment? We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 

Search Real Estate Terms

 

Popular Real Estate Terms

Affordability

A consumer's capacity to afford a house. Affordability is usually expressed in terms of the maximum price the consumer could pay for a house and be ap ...

Down Payment

The difference between the value of the property and the loan amount, expressed in dollars, or as a percentage of value. For example, if the house is ...

Non-Permanent Resident Alien

A non-citizen with a green card employed in the U.S. Non-permanent resident aliens are subject to somewhat more restrictive qualification requiremen ...

Non-Conforming Mortgage

A mortgage that does not meet the purchase requirements of the two federal agencies, Fannie Mae and Freddie Mac, because it is too large or for othe ...

Teaser Rate

The initial interest rate on an ARM, when it is below the fully indexed rate. ...

Refinance

Paying off on old loan while simultaneously taking a new one. Borrowers may refinance to reduce Interest Cost or to raise cash. These are very diffe ...

Popular Real Estate FAQ

What Do I Need To Know About Individual Health Insurance?

Health insurance also known as .disability insurance. is insurance of human beings against bodily injury, disablement, or death by accident or acciden ...

What Are The Benefits Of Liability Insurance?

General Liability Coverage includes: Bodily Injury Liability Coverage: Help protect you in case injuries occur to other people resulting from your ...

What Is A Lock In?

A lock in guarantees a certain interest rate for a certain period of time. ...

What Is Long Term Care Insurance?

Long-term care refers to a broad range of medical and personal care services designed to assist individuals who have lost their ability to perform act ...

What Is A Buildable Acre?

A Buildable acre consists of 43,560 square feet of residentially designated buildable land, after excluding present and future rights-of-way, restrict ...

What Does A Back-end Ratio Mean?

A borrowers other debts, such as auto loans and credit cards, figured into the debt-to-income ratio. ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews
Read Reviews

Agents join here
Add our widget on your Website

Real Estate Advice

Getting Ready to Sell? Don't make these DIY Mistakes! How is Square Footage Determined? 5 U.S. Cities with the Best Public Transportation 6 Reasons you are not selling properties What is Escrow and how does it Work?

FAQ

I looked at a property yesterday with a REALTOR® who seems to be clueless. I am really interested in purchasing the property, though. Can I switch agents and still make the purchase? Do you have any tips to help me manage my investing? What do I need to know about Business Insurance? What is an appreciation? What is principal?