Nick has $35,000 available money for the down payment of his dream home which costs $192,000. He is entertaining a 20% down payment option with 6.25% fixed rate for 30 years. 20% of $192,000 is $38,400 which is more than what he has now ($35,000). Option c is considered since it brings down the down payment to 18% of the total cost which will only be $34,560 and is less than what he has now. This is the most logical option considering the money he has now.
