down payment

/'daun'peimənt/

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Word: Down Payment

Definition: A "down payment" is a sum of money that a buyer pays at the time of making a purchase, with the promise to pay the rest of the money later. It’s usually used when buying expensive items, like a house or a car.

Usage Instructions:

• When to use: You use "down payment" when talking about buying something that costs a lot of money and you don’t pay the full price all at once.
• How to use in a sentence: "I made a down payment on my new car, and I will pay the rest over the next few years."

Example:

• "To buy the house, we need to save for a down payment of 20% of the price."

Advanced Usage:

• In finance, a larger down payment can often reduce the monthly payments and the total interest paid over time.
• "A higher down payment may also help you secure a better mortgage rate."

Word Variants:

• Adjective form: "Down payment" does not have a specific adjective form, but you can describe it by saying "down payment amount" or "down payment percentage."

Different Meanings:

• While "down payment" primarily refers to the initial payment on a purchase, it can sometimes be used metaphorically to describe any initial investment or commitment made towards a larger goal.

Synonyms:

• Initial payment
• Deposit
• Earnest money (specifically in real estate)

Related Idioms:

• "Put skin in the game" – This means to invest something in a project, similar to making a down payment.

Phrasal Verbs:

While there are no direct phrasal verbs that use "down payment," you might use phrases like: - "Pay off" – to complete the payment for something (e.g., "I will pay off the loan in five years.")

Summary:

A down payment is an important part of making large purchases. It helps you secure your item and shows the seller that you are serious about buying.

Academic

Noun

1. a partial payment made at the time of purchase; the balance to be paid later

Synonyms

• deposit