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 ?
An infographic released by LendingTree ranks each state according to the conventional average down payment percentages offered to LendingTree customers from lowest to highest.
But since the median value of a home in Denver is $313,800, a 20% down payment equaled $62,760, a 10% down payment was $31,380 and even a 3% down payment for a loan with Federal Housing Administration insurance equaled $9,414.
The weighted average down payment percentage has held fairly steady between about 13 and 16 percent over the past decade.
While it's no doubt an added cost, it enables buyers to purchase now and begin building equity versus waiting five to 10 years to build enough savings for a larger down payment.
I found that to achieve the same reduction in default risk from a 1 basis point decline in mortgage rates, low- and moderate-income homebuyers would need a supplemental down payment of $32.
WaMu offers potential home buyers deferred payment or low-interest loans, down payment and mortgage assistance, and shared appreciation mortgages.
A down payment can be supplied in the form of a gift, but the recipient should be aware of tax consequences and consult an accountant for advice.
Current HUD regulations allow local housing agencies to use vouchers to defray a family's monthly mortgage expenses but do not provide down payment assistance.
Example: A sells assets to B in exchange for a cash down payment of $1,500 and the receipt of a $3,500 installment note.
2) Mortgage lenders customarily require a down payment of at least 20 percent of the appraised value of a home, but they will accept a smaller down payment if repayment of the mortgage is insured by a public or a private entity.
In any case, a down payment always is factored into the monthly payments.