What is a Down Payment?
A down payment is the initial portion of the home’s purchase price that the buyer pays upfront. It reduces the total loan amount needed to finance the property.
How a Down Payment Works
Down payments are usually expressed as a percentage of the home’s purchase price. Larger down payments lower monthly mortgage payments and may eliminate the need for mortgage insurance.
Benefits of a Down Payment
A higher down payment can help borrowers secure better loan terms, lower interest rates, and build instant equity in their home. It also shows financial stability to lenders.
Capstone for Mortgage Education and Mortgage Training Classes
Capstone Institute prepares students to explain down payment requirements to future clients. Our mortgage education programs train professionals to guide buyers through financing options with confidence.