Mortgage down payment - What is it, who it goes to and where it comes from?
What is a down payment on a home?
The down payment is money you give to the home's seller. The rest of the payment to the seller comes from your mortgage. Down payments are expressed as percentages. A down payment of at least 20% lets you avoid mortgage insurance.
To explain how bankers and real estate agents talk about down payments, let's say you buy a house for $100,000: