Downpayment

Business, Legal & Accounting Glossary

Definition: Downpayment




Full Definition of Downpayment


The downpayment is equity offered with a sales contract to secure a deal. In some cases, it may be earnest money, but in larger deals such as real estate, a separate earnest money payment secures the deal in the approval stages while the downpayment is paid later, if not at the close.

In a real estate transaction, the downpayment determines the size of the mortgage. A larger downpayment suggests a buyer who is more likely to get his loan approved.


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https://payrollheaven.com/define/downpayment/
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Downpayment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 20, 2021 https://payrollheaven.com/define/downpayment/.
Chicago Manual of Style (CMS):
Downpayment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/downpayment/ (accessed: September 20, 2021).
American Psychological Association (APA):
Downpayment. PayrollHeaven.com. Retrieved September 20, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/downpayment/

Definition Sources


Definitions for Downpayment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 5th August, 2021 | 0 Views.