Definition
A down payment is the upfront amount a buyer pays toward the purchase price of a home.
If you are comparing mortgage options, treat down payment as one piece of the total cost and risk picture, not a standalone detail.
Why It Matters
It matters because it affects loan amount, PMI, cash reserves, and monthly payment.
Simple Example
On a $400,000 home, a 10% down payment is $40,000.
How to Use This Term
When you see down payment on a loan estimate, calculator result, or lender conversation, connect it to three practical questions: how it affects monthly payment, how it affects cash needed now, and how it affects flexibility later.