Home loan where the lender receives a premium payment and, in return, reduces the interest rate during the early years of a mortgage.
A fixed-rate mortgage where you may "buy down" (by paying a greater up-front cost) the rate for one or two years in order to lower your initial payments, qualify for a larger loan, and know exactly what your payments will be when the loan adjusts.
a fixed rate loan that requires you or the property seller to pay additional points at closing in exchange for a lower interest rate for the first one or two years
a loan that begins at a rate below
A temporary buydown is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower's monthly payments during the first few years of a mortgage. A buydown will sometimes be offered as an incentive by a builder or a seller to make the terms of a purchase more attractive.
A fixed rate mortgage with a below-market interest rate for a stated initial period. The lender receives a payment subsidy in the form of additional discount points paid by the builder, seller or buyer.
() A temporary buydown is a mortgage on which an initial lump sum payment is made by any party to reduce a borrower's monthly payments during the first few years of a mortgage. A permanent buydown reduces the interest rate over the entire life of a mortgage.
A home loan in which the lender receives a premium as an inducement to reduce the interest rate during the early years of the mortgage.
A mortgage with a below-market interest rate made by a lender in return for an interest rate subsidy in the form of additional discount points paid by the builder, seller, or buyer.
There are two kinds of buydown mortgages. A temporary buydown is one in which an initial lump sum payment is made by any party to reduce a borrower's monthly payments during the first few years. A permanent buydown reduces the interest rate over the entire life of the mortgage.