Personal Finance Real Estate

Q&A: What is a down payment?

A down payment is a sum of money that one would “put down”, or pay up- front, when buying a house and getting a mortgage on that house. The standard down payment is 20% of the home’s value.
Down payments can also be made on other types of property and even cars.

Real-life application: Person A wants to buy a $200,000 home and put down 20% on it, so they are working toward saving up $40,000 (20% x $200,000).

See also:
Q&A: How much should I put down when buying a house?

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