Down Payment
The share of a purchase price paid up front from savings when the rest of the price is borrowed.
A down payment shrinks the loan, which shrinks every payment after it and lowers the total interest paid.
Often Confused With
- Mortgage
- The down payment is the cash paid up front; the mortgage is the borrowed remainder.
Taught In
See Also
3.2.C.5 · 5.3.A.3