Real Estate City Information: Mortgages

Down Payment

The down payment is the part of the purchase price the buyer pays in cash and is not financed with a mortgage. Your down payment will reduce the amount you'll need to borrow. So, the more cash you put down, the smaller the size of your loan, and the smaller the amount of your mortgage payments.

Lenders often view mortgages with larger down payments as more secure because more of your own money is invested in the property. However, there are other loans that require as little as 3% to 5% of the purchase price for a down payment.