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What is a down payment?

What is a down payment? Here are some definitions.

Noun
  1. (law, finance) A payment representing a fraction of the price of something being purchased, made to secure the right to continue making payments towards that purchase.
  2. (by extension) Any initial commitment signifying an intention to carry out a larger future commitment, even though no legal rights or obligations are secured.
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If you're not ready this year, start by fixing your credit and saving small amounts toward your down payment.
You will be expected to make a significant down payment, with the balance by agreed instalments over a short period.
If you agree to assume those liabilities however, you can reduce your out-of-pocket down payment by that much.
To determine the amount of the wraparound mortgage, deduct your down payment from the purchase price.
The Jacobses found a federally funded program that helped them with their down payment.
What savings they do have is normally earmarked for an eventual down payment on a house or condo.

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