The downpayment is equity offered with a sales contract to secure a deal. In some cases it may be earnest money, but in larger deals such as real estate, a separate earnest money payment secures the deal in the approval stages while the downpayment is paid later, if not at the close.
Related Fool Articles
Recent Mentions on Fool.com
- 3 Reasons First Republic Bank Is a Buy
- 3 Steps to Getting Mortgage Lenders to Say "Yes!"
- Sprint?s Newest Promotion Is Smart, but T-Mobile?s Score Program Is Smarter
- Don't Be Fooled by the New FHA Mortgage Insurance Premiums
- Can You Buy Your Next Home With No Money Down?
- The Biggest Reason Home Buyers Are Holding Back