Average down payment on a house Meaning and Definition
Average down payment on a house
Pronunciation
/ˈævərɪdTaʊn PAymənt ɔn ə haʊs/
Part of Speech
Noun
Definition
The amount of money that a home buyer pays upfront towards the purchase of a house, typically ranging from 5% to 20% of the purchase price.
Examples
- The majority of first-time homebuyers make a down payment of around 10% of the house price.
- Average down payment on a house can vary significantly depending on the location and type of property.
Etymology
The term “down payment” originated in the late 19th century, with the phrase “put down” meaning to pay a sum of money as a deposit.
Usage Notes
Average down payment on a house is typically used in the context of real estate transactions and financial planning.
Cultural References
In the popular TV show “House Hunters,” the term “down payment” is frequently mentioned as homebuyers navigate the process of purchasing a new home.
Idiomatic Expressions or Phrases
Common idioms or phrases that include the word are “putting down roots” or “investing in a place.”
Related Words or Phrases
- Down payment
- Homebuying
- Financial planning
Collocations
Average down payment on a house is often paired with words such as “mortgage,” “home loan,” and “property.”
Frequency of Use
Average down payment on a house is a commonly used term in the real estate industry, especially among first-time homebuyers and those planning for a future purchase.
Common Misspellings
Some common misspellings include “averange down payment” and “average downpatment.”
Additional Information
Average down payment on a house can vary significantly depending on factors such as location, credit score, and loan type. In general, a higher down payment can help reduce the amount borrowed and potentially lower the monthly mortgage payment. However, it’s essential for homebuyers to weigh the pros and cons of different down payment options and consider their individual financial situation and goals.