Loan basics

Down payment

Also known as: downpayment

The cash you pay upfront at purchase; the rest of the home price is typically financed.

A down payment is the portion of the home price you pay out of pocket instead of borrowing. A larger down payment lowers the loan amount and can reduce or eliminate PMI on a conventional loan (often when you put at least 20% down). Different loan programs have different minimum down payment rules.

See also