The cash portion of a purchase price you pay upfront.
20% down avoids PMI on conventional loans, but it is not a law: FHA allows 3.5%, VA and USDA 0%. The trade is monthly cost and insurance versus years of saving.
Example: 20% of $400,000 = $80,000 down, $320,000 financed.
FAQ
What is Down Payment in simple terms?
20% down avoids PMI on conventional loans, but it is not a law: FHA allows 3.5%, VA and USDA 0%. The trade is monthly cost and insurance versus years of saving.