Definition
A down payment is an upfront portion of a purchase price paid in cash.
Why It Matters
It reduces loan size and lender risk.
Example
Paying 20% upfront when buying a home.
Malone Global University
Malone Global University
Economics Glossary – Malone Global University
A down payment is an upfront portion of a purchase price paid in cash.
It reduces loan size and lender risk.
Paying 20% upfront when buying a home.