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TeachMeFinance.com - explain Cash reserves Cash reserves -- a cash amount sometimes required to be held in reserve in addition to the down payment and closing costs; the amount is determined by the lender. Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.