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In accounting, a down payment (also called a deposit in British English) is an initial up-front partial payment for the purchase of expensive goods or services such as a car or a house. It is usually paid in cash or equivalent at the time of finalizing the transaction .
Each account can be broken down further, to provide additional detail as necessary. For example: Accounts Receivable can be broken down to show each customer that owes the company money. In simplistic terms, if Bob, Dave, and Roger owe the company money, the Accounts Receivable account will contain a separate account for Bob, and Dave and Roger.
In financial accounting, debt is a type of financial transaction, as distinct from equity. ... A 20% down payment is equivalent to an 80% loan to value.
What is the minimum down payment for a house? For conventional loans, the minimum mortgage down payment is 3 percent. FHA loans require a down payment of 3.5 percent with a credit score of 580 or ...
“If you can put a 20% down payment on the house you are buying, you will be able to save the cost of private mortgage insurance,” said Vida Jatulis, CFP, a financial planner with MainStreet ...
This type of account gives you the flexibility to save more for your down payment at any time (be sure to check your bank’s withdrawal limit policy), but also comes with variable rates. Consider ...
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related to: down payment in accounting termsHighest Satisfaction for Mortgage Origination, 2010-2017 - J.D. Power