Back to Glossary
Down Payment
January 19, 2023
A down payment is an amount of money paid by a buyer at the beginning of the process of purchasing a costly commodity or service. The down payment is a percentage of the entire purchase price, and the buyer will frequently take out a loan to fund the remaining. A down payment on a house is a classic example of a down payment. The home buyer may pay 5% to 25% of the entire price of the home upfront, with the remaining covered by a mortgage from a bank or other financial institution.
Related Topics
Navigating the Process of Mortgage Modification
What Is Non-Recourse Lending?
What Is a Short Sale?
When Is the First Mortgage Payment Due?
What Does Foreclosure Mean?
What Is a HELOC Loan?
Loan Default
Financial Considerations (For First-Time Home Buyers)