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down payment
This term is primarily used in financial and real estate transactions to describe the upfront equity a buyer provides. It signals a commitment to the purchase and reduces the total amount of the loan required from a lender. In a commercial context, it is often expressed as a percentage of the total purchase price.
While similar to a deposit, a down payment is specifically the portion of the purchase price paid immediately, whereas a deposit might be a refundable sum held to secure an item before the final sale is completed.
Meanings
Examples
We need to save at least twenty percent for a down payment on a house.
I can put down a five thousand dollar down payment today.
Do you have enough for the down payment or do you need a loan?
He wondered if he could negotiate a lower down payment with the dealer.
The bank requires a substantial down payment for commercial properties.
The bank requires a substantial down payment for commercial properties.
I cannot believe we finally saved enough for the down payment on our first home.
A larger down payment will reduce your monthly mortgage payments.
The contract specifies that the down payment is non-refundable.