Down Payment

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Dictionary Says

Definition of 'Down Payment'

A type of payment made in cash during the onset of the purchase of an expensive good/service. The payment typically represents only a percentage of the full purchase price; in some cases it is not refundable if the deal falls through. Financing arrangements are made by the purchaser to cover the remaining amount owed to the seller. 

Making a down payment and then paying the rest of the price through installments is a method that makes expensive assets more affordable for the typical person.
Investopedia Says

Investopedia explains 'Down Payment'

For example, because houses are extremely expensive assets, home buyers typically pay down payments that equal 5-25% of the total value of a home. The remaining 75-95% of the price will be covered by a bank or other financial institutions through a mortgage loan.
Search results for

'Down Payment'

  • How To Get A No-Down-Payment Mortgage - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0611/How-To-Get-A-No-Down-Payment-Mortgage.aspx
    ... How To Get A No-Down-Payment Mortgage. Posted: June ... Here's why: even
    federally-insured FHA loans require a down payment of 3.5%. That may ...

  • Understanding The Mortgage Payment Structure

    http://www.investopedia.com/articles/pf/05/022405.asp
    ... in an effort to help the country overcome the Great Depression, created a mortgage
    program that minimized the required down payment, thereby increasing the ...

  • I have a profit-sharing plan with my former employer. I am now ...

    http://www.investopedia.com/ask/answers/10/profit-sharing-down-payment.asp
    ... I have a profit-sharing plan with my former employer. I am now trying to buy a home.
    Can I use my profit-sharing money to put a down payment on a house? ...

  • What The New Mortgage Lending Rules Really Mean - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0511/What-The-New-Mortgage-Lending-Rules-Really-Mean.aspx
    ... FHA Mortgage Insurance Premiums Change Again FHA mortgages are considered a
    higher-risk product since they require a down payment of only 3.5% and have ...

  • How To Outsmart Private Mortgage Insurance

    http://www.investopedia.com/articles/pf/07/outsmart-pmi.asp
    ... Read More »; Making A Larger Down Payment Vs. Buying a Cheaper House. We look at
    the financial differences between purchasing a cheaper home and making a ... ...

  • House Price Vs. Interest Rate: Which Is More Important?

    http://www.investopedia.com/articles/mortgages-real-estate/10/house-price-vs-interest-rate.asp
    ... You calculated your 30-year monthly mortgage payment on $80,000 – the amount you
    are mortgaging after a 20% down payment and your closing costs. ...

  • How To Afford A Second Home - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0611/How-To-Afford-A-Second-Home.aspx
    ... Financing Options for a Vacation Home For many home purchasers, an FHA-insured loan
    is the prime choice because these loans require a down payment of just 3.5 ...

  • Requirements For A Post-Housing-Bust Mortgage - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0911/Requirements-For-A-Post-Housing-Bust-Mortgage.aspx
    ... What Are the Rules? Credit To qualify under FHA rules, a borrower needs a minimum
    score of 580 if he or she wishes to make only the minimum 3.5% down payment. ...

  • 6 Reasons To Avoid Private Mortgage Insurance

    http://www.investopedia.com/articles/pf/07/avoid_pmi.asp
    ... If you're thinking of buying a home, remember you're going to need to save
    up enough money for a 20% down payment. If you can't, it's ...

  • Insuring Federal Housing Authority Mortgages

    http://www.investopedia.com/articles/mortgages-real-estate/09/federal-housing-authority.asp
    ... FHA loans have lower down payment requirements, and less stringent income and credit
    requirements than conventional loans. ... Making A Larger Down Payment Vs. ...

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