A down payment is the initial sum paid by a borrower to purchase a property, typically expressed as a percentage of the total price. It signifies the buyer’s commitment, reduces the loan amount needed, and often influences the terms of the mortgage. The size of a down payment can vary based on loan type, lender requirements, and the buyer’s financial status. Generally, it lowers monthly mortgage payments, demonstrates financial stability, and provides the lender with a measure of security against loan default by establishing the buyer’s equity in the property.