Down payment

Down payment,

Definition of Down payment:

  1. Good faith deposit made by a buyer to underline his or her commitment to complete the deal. In mortgage agreements, down payment is the difference between the purchase price of a property and the mortgage loan amount. Also called earnest money or front money.

  2. A down payment is a type of payment, often in cash, made in the early stages of a purchase of an expensive good or service. The payment represents a percentage of the full purchase price. In some cases, the down payment is not refundable if the deal falls through because of the purchaser. In most cases, the purchaser makes financing arrangements to cover the remaining amount owed to the seller.

  3. For example, many homebuyers make down payments of 5% to 25% of the total value of the home, and a bank or other financial institution covers the remainder of the costs through a mortgage loan. Down payments on car purchases work similarly.

  4. An initial payment made when something is bought on credit.

Synonyms of Down payment

Down payment, Part payment, Advance payment, Prepayment, Instalment, Security, Retainer, Pledge, Stake

How to use Down payment in a sentence?

  1. The more that you can put on your down payment the lower your monthly payments will be throughout your loan.
  2. Lenders may require a varying amount as a down payment (as low as 3.5% and as high as 50% in the United States), depending on the borrower and the purchase.
  3. The more that you can put on your down payment the lower your monthly payments will be throughout your loan.
  4. It had taken their savings to make the down payment on a house.
  5. Upon giving the bank a down payment on the house she had been dreaming of owning for years, the hardworking woman knew she would happily work long hours so she could pay the remaining payments to own the house completely.
  6. A down payment is a payment made as part of a large purchase in the early stages of a financing arrangement.
  7. The higher the down payment, the lower the interest payments will be on the remainder of the loan.

Meaning of Down payment & Down payment Definition