Down Payment and Equity

Downpayment* or Equity**  is The portion of the home price or value that is not financed by the mortgage loan.

From a lender’s point of view, the larger the downpayment or equity invested in the purchase  or refinance the more desirable the lending opportunity is to the lender.

*DownPayment : Down payment is the amount of money from the borrower(s)’ own resources used in support of the property purchase.

**Equity : In the context of real estate, the difference between the current market value of the property and the amount the owner still owes on the mortgage. It is the amount that the owner would receive after selling a property and paying off the mortgage.
The portion of the home price that is not financed by the mortgage loan. The buyer must pay the down payment from his/her own funds or other eligible sources before securing a mortgage.