Cash

Paying all cash for the property with no loan.

Mortgage

A debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments.

Down Payment

The amount of money that a buyer has saved to help fund the purchase of a home. This amount is usually given as a percentage of the total of the home's purchase price.

Closing Costs

Refer to the charges & fees that are paid when the home is purchased. Typically, the buyer's costs include mortgage insurance, homeowner's insurance, appraisal fees & property taxes; while the sellers covers ownership transfer fees & pays a commission to their real estate agent.

Investment

Purchased with the intention of earning a return on the investment either through rental income, the future resale of the property or both. Can be a long-term endeavor or a short-term investment.