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 average down payment amount for conventional loan offers made to LendingTree customers in Q2 was $37,576, or 17.
Lending Practices, Accepts Seat with National Down Payment
Often, a down payment is the biggest hurdle standing between renting and home ownership.
Vocal critics of down payment gifts argue that such gift programs significantly increase mortgage defaults, a position that is not supported by the data.
The article then goes on to explain that before first time home owners try and seek out down payment assistance, they must first ask themselves a few questions revolving their home's down payment.
Of the many numerous articles, Loan Love has recently released a new article titled "Is A Down Payment On A House Tax Deductible?
These mortgage products require little or no down payment and reserves; have flexible credit qualifications and expanded debt-to-income ratios; and provide opportunities for borrowers who have experienced credit difficulties.
Even though down payments on a home mortgage loan are not tax deductible, the article luckily points out that there are still some benefits loan borrowers can reap when purchasing a home with a mortgage loan.
Although down payments on a loan for purchasing a house cannot be deducted, Loan Love reminds loan borrowers that they need not fret when it comes to mortgage down payments.
For most conventional affordable home-loan programs, borrowers are required to provide a 3% down payment from their own funds.
Namely, they advise readers that there is typically no need for a down payment and that furthermore, loan borrowers do not have ponder on whether they should refinance a mortgage loan
For many first-time home buyers, the lack of a down payment is the biggest obstacle keeping them from homeownership.