Question

A seller has accepted an offer from John. John wants to remodel and add an outdoor pool when he has enough equity built up to cover the project. Which loan arrangement will help him build equity faster than the others?

Answer 1

Answer:

make a 40% down payment upfront

Explanation:

The best arrangement that would help him accomplish this would be to make a 40% down payment upfront. The best way to build equity as fast as possible is to put down the biggest down payment that you can. The bigger the down payment, the higher the boost in equity that you will receive. That is why it is the best option. Anything above 20% down payment is the ideal scenario, while 40% would be perfection.