A down payment is money paid up front for a financial transaction, such as buying a house or car.
Buyers often take out loans to finance the remainder of the purchase price.
The higher the down payment, the less the buyer will need to borrow to complete the transaction, the lower his monthly payments and the less interest he will pay in the long run.
Depending on the borrower and type of purchase, lenders may require a down payment ranging from 0% to 50%.
2/28 adjustable rate mortgages (ARM) offer an initial fixed rate for two years, after which the interest rate is adjusted semi-annually for another 28 years.
An 80-10-10 mortgage consists of two mortgages: the first is a fixed-rate loan of 80% of the value of the home; the second - 10% as a loan secured by equity capital; and the remaining 10% as a down payment in cash.
A movable property loan is secured by a movable item or movable property that is used to purchase the loan. The creditor has the right of ownership of the movable property.
The holiday act literally releases the parties to the transaction from previous obligations, such as payments on the terms of the mortgage, because the loan is repaid.
An FHA 203(k) loan is a government-secured mortgage loan, which is essentially a construction loan that finances both the purchase and renovation of a home.