What is the term for the amount of money paid toward the purchase price of a home that is not financed?

The term for the amount of money paid toward the purchase price of a home that is not financed is "Down Payment." This payment is typically made upfront when purchasing a property and represents a portion of the home's total price. The significance of the down payment lies in its role in reducing the overall mortgage amount that needs to be financed. It also demonstrates the buyer's commitment and financial stability to lenders, influencing the approval and terms of mortgage financing.

A deposit generally refers to a sum paid as part of the agreement to secure the purchase, which might later be applied to the down payment but is not the same. Equity represents the homeowner’s stake in the property, calculated as the current market value of the home minus any outstanding mortgage debt, which is determined after the purchase and not at the time of the down payment. Closing costs are various fees and expenses incurred during the completion of the real estate transaction, such as loan origination fees, title insurance, and appraisal fees, but they do not directly relate to the down payment itself.