Resources > Glossary > Down Payment

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Down Payment

Function: noun

Definition 1:
The portion of the purchase price of a property that the buyer pays in cash and does not finance with a mortgage. A down payment of at least 20% is necessary to avoid paying PMI private mortgage insurance. Some borrowers elect to get a double mortgage ( piggy back mortgage or combo loan ) where one mortgage covers 80% of the purchase price and a second mortgage covers part or all of the remaining 20%.