down payment

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Down Payment

A percentage of the total purchase price of an item that is proffered when the item is bought on credit.

In an installment sales agreement, a buyer is required to pay part of the total price, usually in cash, and later pays the balance through a number of regularly scheduled payments.

A down payment is sometimes known as earnest money, or a sum of money that a buyer pays upon entering a contract to indicate a Good Faith intention as well as an ability to pay the balance.

down payment

noun collateral, deposit, installment, payment, retainer, stake, surety
See also: deposit, handsel, installment
References in periodicals archive ?
Natoli signed the contract and delivered it, together with her personal check in the amount of the required downpayment.
The remaining downpayment funds can come from flexible sources including gifts, grants or employer contributions.
An independent study released today said that no matter what the downpayment gift source, about 5 percent of all mortgage loans guaranteed by the Federal Housing Administration come back to the agency as claims against its insurance fund.
Fleet Affordable Advantage(SM) Mortgage - requires a downpayment of just 3 percent for one-unit properties.
INDIANAPOLIS--(BUSINESS WIRE)--March 15, 1996--The Indiana Housing Finance Authority is offering downpayment assistance to help low-income Hoosiers buy their first home, Lt.
The Low Down Easy Loan is especially perfect for these buyers because little money is required up front; this mortgage offers the lowest downpayment possible and the ability to finance the closing costs.
Private mortgage insurance is generally required by lenders on conventional first mortgages made to home buyers who make downpayments of less than 20 percent of the purchase price.
The required downpayment will be 3 percent of the home's price, compared to usual downpayments of 10 to 20 percent.
2 percent of Freddie Mac's first-time home buyers bought their homes with downpayments of less than 20 percent, while more than 24 percent of first-time homebuyers made downpayments of less than 10 percent.
Both repeat and first-time homebuyers entered the California housing market in 1993 with smaller downpayments.