What Is a Down Payment? It is one of the basic terms that you will hear whenever you deal with mortgages
At the time you decided to purchase something of a good value, such as a house or car, you might pay a portion of that item's price in advance. This is called the down payment. For the rest, buyers apply for a loan to cover it up and close the deal. Lenders, depending on the borrower or type of the purchase, may require down payments at different rates from 0% up to 50%. You are better to know that a down payment is not refundable in some cases when the deal falls.