Down Payment
Categories: Bonds, Banking, Real Estate
The money you pay up-front on something when applying for financing.
Example
Let's say you buy a $200,000 house. The bank is not likely to give you all the $200,000 you need—you're going to need a down payment. So you might pay $50,000 yourself and the bank might give you $150,000. The $50,000 is your down payment.