Home BuyingHomebuying Glossary
Down Payment
The upfront cash you pay toward a home's purchase price, with the rest covered by your mortgage.
In plain English
Your down payment is the portion of the home's price you pay out of pocket at closing rather than borrowing. It's typically expressed as a percentage of the purchase price — for example, a 10% down payment on a $400,000 home is $40,000.
Why it matters
A bigger down payment lowers your monthly payment and loan amount, and putting down 20% or more on a conventional loan lets you avoid paying PMI entirely.
Where you'll run into it
Guides and tools on TheBuyingPath that cover down payment in context.
State Programs & Down Payment AssistanceHow Much House Can I Afford?Mortgage & Ownership Cost CalculatorSee your true monthly cost including mortgage, taxes, insurance, HOA, PMI, and maintenance reserve.Homeownership Goal PlannerTurn your dream home into a savings plan. Track your timeline, readiness score, milestones, and personalized action plan.
Related terms
Not sure where this fits in your process?
Answer a few questions and get a personalized homebuying roadmap — where you are now, what comes next, and which terms like this one matter at each step.
Start your roadmap