Down Payment

The portion of a home's purchase price that is paid in cash and is not part of the mortgage loan.

Source: U.S. Department of Housing and Urban Development


The difference between the purchase price and mortgage amount. The down payment becomes the property equity. Typically it comes from cash savings, but it can also be a gift that is not to be repaid or a borrowed amount secured by assets.

Source: Ginnie Mae


An initial cash payment in a lease that reduces the capitalized cost or is applied to other amounts due at lease signing. See Capitalized cost reduction.

Source: Federal Reserve Board