Down payment
The cash you pay toward a home's price yourself at closing. A mortgage covers the rest.
The down payment is usually stated as a share of the price. Twenty percent down on a conventional loan avoids private mortgage insurance. FHA loans allow 3.5% down, some conventional loans 3%, and VA and USDA loans offer zero down for eligible buyers.
A smaller down payment gets you into a home sooner but usually costs more through mortgage insurance or a higher rate. Closing costs are separate and come on top of the down payment.
Example
On a $300,000 home, 10% down is $300,000 × 10% = $30,000, and the mortgage covers the other $270,000.