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.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
When asked if HouzKEY participants who cannot afford down payment will truly be able to afford the property in the future either by renting or buying, Maybank said it 'will do its due diligence and assessment on customer to continue on based on current cash flow'.
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.
We encourage our clients to own their homes, offering them the lowest rates in the market, subject to terms and conditions, and zero down payment which will enable them to finance a property without worrying about the down payment."
In 2014, 25 percent of buyers using conventional or FHA loans put less than 3 percent down when purchasing a home, down from 27 percent in 2013 and down from a peak of 46 percent in 2009, when a first-time homebuyer tax credit stimulated purchases by first-time homebuyers, who are more likely to utilize low down payment loans.
BEIRUT: The minimum 25 percent down payment imposed by the Central Bank on car loans caused a 6 percent decline in the total number of registered new and used vehicles during January 2015 compared to the same month in 2014, a statement issued by the association of car importers in Lebanon said.
"Today's consumers persistently overestimate the size of a down payment they need to finance a home,'' says Christina Boyle, SVP and Head of Single-Family Sales & Relationship Management at Freddie Mac.
Liberal community housing groups, mortgage bankers, and home builders lobbied extensively for the last three years against the down payment requirements.
The 16 GB iPad Air 2 is available for $26.24/month for two years; no required down payment. Meanwhile, the 64 GB iPad Air 2 is available with a down payment of $99.
The Chevy sub-compact car is now made more affordable with the "Transform your Everyday All-in Low Down Payment" promo.
Their credit standards are more restrictive than government-insured loans and require a minimum down payment of five percent for an owner occupied property.
The director said the amount paid as down payment would be recovered.
DUBAI With zero per cent interest for the first year, zero per cent down payment and low-interest financing, buying a car in the UAE has never been easier, thanks to new schemes unveiled by dealerships aching to recover from the recent slump.