I am considering taking out a loan and was asked to put 20% as a downpayment. What happens to that 20% once I put it down? Am I able to access it, or does the bank hold onto it until the balance is repaid?
A downpayment is an initial payment that is applied toward the purchase price. You can't use it and technically you can't get it back without selling the property. If the downpayment is held until the purchase is approved, it may be refundable in whole or in part, if the transaction doesn't take place for some reason.
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A downpayment is an initial payment that is applied toward the purchase price. You can't use it and technically you can't get it back without selling the property. If the downpayment is held until the purchase is approved, it may be refundable in whole or in part, if the transaction doesn't take place for some reason.
