What is the term for the portion of the property's purchase price that is paid in cash?

The term for the portion of the property's purchase price that is paid in cash is known as the down payment. This represents the upfront amount that the buyer contributes toward the purchase of the property, which is often expressed as a percentage of the total price. The down payment is crucial because it reduces the loan amount required and can influence the terms of the mortgage, such as interest rates and private mortgage insurance (PMI) requirements. A larger down payment may also demonstrate to lenders that the buyer is financially responsible, potentially leading to more favorable loan conditions.

Closing costs refer to the fees and expenses associated with finalizing a real estate transaction, which can include title insurance, appraisals, and attorney fees, but do not constitute the cash used for the purchase price itself. Equity is the value of the property minus any debts against it, and investment generally denotes the act of allocating resources, usually financial, with the expectation of generating an income or profit. While all these terms are relevant in real estate transactions, none reflects the specific cash component of the purchase price as accurately as the down payment.