what is the down payment on a house

A down payment on a house is the initial cash payment that a buyer makes during a real estate transaction and represents a percentage of the total purchase price of the home. The down payment can range between 3% and 20% of the purchase price, depending on the loan type. Some loan programs dont require a down payment at all. The required down payment is usually determined by the type of mortgage you choose, but your financial situation and the type of property you’re buying (whether it’s your primary residence or an investment property, for example) also play a role. Making a larger down payment upfront reduces your monthly mortgage payments and saves you money on interest in the long run. The minimum down payment required for a house varies depending on the type of mortgage youre planning to apply for, and it can be as low as 3% for some conventional mortgages.