Down Payment

A down payment is an upfront payment made by a borrower when purchasing a property or securing a loan, typically expressed as a percentage of the total purchase price. It reduces the loan amount and demonstrates the borrower’s financial commitment. 

It is important to note that the size of the down payment influences loan terms, interest rates, and approval likelihood. A larger down payment can lower monthly payments and reduce overall interest costs, making it a key factor in both lending decisions and long-term financial planning.