Typical down payment on a house Meaning and Definition

Pronunciation

/typically down payment on a house/ 🔊

Part of Speech

Noun phrase

Definition

A sum of money paid upfront when buying a house, typically ranging from 3.5% to 20% of the purchase price, varying depending on factors such as credit score, loan type, and property type.

Examples

• After saving for years, she made a typical down payment on a house when she bought her first home.
• The couple had to make a larger down payment on a house due to their lower credit score.

Synonyms

• Initial deposit
• Down payment amount

Antonyms

• No down payment
• Mortgage alone

Additional Information

The typical down payment on a house varies across the world, depending on local regulations and financial constraints. In the United States, for example, a down payment of 20% is often recommended to avoid private mortgage insurance (PMI). However, some mortgage options, such as FHA loans, allow for lower down payments. In other countries, government-backed mortgages or other housing programs may offer more flexible down payment requirements.

Paying a larger down payment can reduce the amount borrowed and lower monthly mortgage payments. However, it may also require a longer savings period and may not be feasible for everyone. A combination of savings, financial assistance, and government programs can help individuals achieve their dream of owning a home while minimizing the financial burden.

Etymology

The term “down payment” originated from the practice of depositing money prior to the delivery of goods or services, with the understanding that the full payment would be made later.

Usage Notes

In formal financial contexts, it is common to use the phrase “down payment” in sentences, while in casual conversations, people may simply use the term “down payment.”

Cultural References

In popular culture, the phrase “Typical Down Payment on a House” appears in financial advice columns, real estate blogs, and personal finance books.

Idiomatic Expressions or Phrases

• “Putting a down payment on the future”
• “Saving for a down payment is like saving for a rainy day”

Related Words or Phrases

• Mortgage
• Homeownership
• Financing

Collocations

• Typical down payment on a house
• Down payment options
• Minimum down payment required

Frequency of Use

The term “Typical Down Payment on a House” is commonly used in real estate and financial contexts, with a moderate frequency of use in everyday conversations.

Common Misspellings

• Typical Downpayment
• Downpayment on a house