Mortgage Definition
Down Payment
The upfront cash payment made when purchasing a home, typically expressed as a percentage of the purchase price. A 20% down payment is traditional, but many loans allow less.
Why it matters
This term directly affects your cash-to-close plan. Buyers often focus on rate first, but upfront funds and reserve cushions usually determine whether a purchase is actually feasible.
Related terms
Related tools
- Mortgage Calculator
Estimate principal, interest, taxes, insurance, and PMI in one payment view.
- Affordability Calculator
Validate your target budget and debt-to-income range before making offers.
- Closing Costs Calculator
Estimate cash-to-close so you can compare monthly and upfront costs together.
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