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 ?
The payment can be made in six-month installments, with EGP 3,405 paid per month, a nine-month installment with EGP 2,405 paid per month, a 12-month installment with EGP 1,905 paid per month, an 18-month installment with EGP 1,405 paid per month, or a 24-month installment with EGP 1,155 paid per month, all with no down payments.
Nevertheless, the proportion of loans with down payments of less than 20% rose from an average of just below 10% in 2015 to above 15% in 1Q17 among Fitch-rated entities, most of which are large finance companies.
Other markets where the average down payment assistance available was less then what was needed for a 3 percent down payment on a median-priced home included counties in Philadelphia, San Francisco, Chicago, Kansas City, Des Moines, Portland (OR) and St.
Matching down payment assistance grants ranging from $2,500 up to $7,500 will be based on the eligible homebuyers contribution.
Down Payment Resource and Homes for Heroes are working together so any 'hero' homebuyer will see additional savings and discounts they may be eligible for when buying a home.
After analyzing income, rental and housing sale data, the Seattle-based company determined mortgages remain significantly more affordable than rents in many markets, but added many renters could not save mortgage down payments because of their high rents.
An average purchase price of $291,428 and an average loan amount of $232,527 in 2013 translated into an un-weighted average down payment of $58,900, also the highest in terms of dollar amount of any year since 2004.
Educating potential homeowners on the rules of down payments -- and available assistance programs -- plays a large role in getting qualified borrowers off the sidelines and into homeownership, according to Boyle, who also notes that today's historically low mortgage rates, coupled with affordable home prices in many parts of the country, make it an attractive time to consider buying.
The down payment solution is a financing option Al Futtaim wanted to do for customers to avoid customers having to use credit cards and personal loans just to secure the 20 percent down payment," Al Futtaim Motors' Manager -- Sales Planning & Distribution Andrew Squires told Kipp.
In addition, a down payment allows a lender to charge a lower interest rate on the loan.
Many home buyers like Maddrey are finding they qualify for down payment or mortgage assistance.
In the Inland Empire during last year's third quarter the median home price was $393,000 and the minimum income needed to buy it was $134,629 with a 10 percent down payment.