Down Payment

A initial payment made when purchasing expensive items, often a percentage of the total cost.

📖 Explanation:

A down payment is a portion of the total cost of a purchase that is paid upfront. It is commonly associated with buying a house or a car. The remaining amount is typically financed through a loan.

📀 Examples:

  • When buying a house, a common down payment is 20% of the home's purchase price.
  • For a car, a down payment may be required to secure financing and reduce the overall loan amount.

Additional notes