Down Payment
Lending & MortgagesThe upfront cash payment made when purchasing a home or vehicle, expressed as a percentage of the purchase price.
Example
Example: On a $350,000 home, 20% down is $70,000 — no PMI required. At 10% down ($35,000), you pay PMI of approximately $120/month until reaching 20% equity. At 3.5% FHA ($12,250), you pay MIP for the life of the loan ($210/month). The less you put down, the higher your monthly costs — but the sooner you start building equity instead of paying rent.