Down Payment

(redirected from Downpayment)
Also found in: Dictionary, Thesaurus, Financial, Encyclopedia.

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 ?
Designed for more private and luxurious trips with the family or friends, the stylish Gratour iM6 could be driven home for as low as PhP 65,000 all-in low downpayment promo, or P6,762 per month.
It is interesting to note in Figure 1, which shows amortization of a loan on which a 10% downpayment has been made, that the loan balance on a 30-year maturity does not get ahead of the 2% depreciation on the building until the ninth year.
NMHC analysis of HUD data shows, however, that risk-based premiums will not protect the FHA because households with the highest credit scores required by the bill are still twice as likely to default if they use seller-financed downpayment assistance.
Colton (2003) argues that both the VA and FHA programs contributed to this large rise and that their success was largely due to guarantee provisions that allowed new households and veterans to buy homes without a downpayment.
Ed Royce, R-Calif., questioned Jackson about the FHA zero downpayment proposal, in particular about the possibility that it will lead to increased default rates.
The American Dream Downpayment Act will provide $200 million in grants in each year for the next two years to cover down payment and closing costs for low-income families that qualify for the program.
Raytheon needed to get US government approval of an export license for the ASPIS II, and Greece needed to make it first downpayment. Work had been expected to begin in June, but Greece's downpayment was not made until late September.
No Grouse, bought out of John Hills's yard in a private deal last autumn, gained his first downpayment on
The small share of refinancings insured by the FHA is not surprising because households that refinance often have sufficient equity in their homes and have accumulated enough other assets to cover the larger downpayment typically required for a conventional mortgage.
"Lowering the downpayment has had an effect on resales.
A good number of homebuyers usually prefer a low downpayment scheme as this means that they don't need to shell out a huge amount just to get started on their dream home.
"Papaano naman sila makakabili ng jeep na P1.2 million hanggang P1.8 million at ang bibigay mo lang P80,000 na downpayment? So anong pwede nating gawin dito (How will they afford new jeeps worth P1.2 M to P1.8 M when you would only give them P80,000 for downpayment?