In order to continue securing a loan, a borrower pays this specific type of initial amount. 5% to 25% of the total loan amount is the paid amount, generally varying in range. Depending on the selected loan program and the borrower’s FICO score, a higher amount paid at the beginning will result in lower interest rate paid on the remaining amount of the loan. For example, a person requiring the loan needs to make an initial payment of $25,000 on a $250,000 loan amount if the minimum down payment for a housing loan to be approved is 10%.

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