buy-down

American  

[bahy-daun] / ˈbaɪˌdaʊn /

noun

1. a subsidy for a long-term mortgage offered by a third party, as a builder or developer, to lower interest rates for a buyer in the early years of the loan.

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Example Sentences

See Examples For:

buy-down

For buyers who qualify for a mortgage but may be worried about their short-term financial picture, a temporary buy-down may give them the confidence to take out a mortgage and purchase the home.

From Washington Post ● Sep. 14, 2022

Melgar: A buy-down can be paid by the buyer, seller, mortgage lender or builder.

From Washington Post ● Sep. 14, 2022

The cost of such insurance over the life of the loan could outweigh any benefit a borrower would receive from using their funds to fund a temporary buy-down.

From Washington Post ● Sep. 14, 2022

The dollar amount required to fund the buy-down account is a calculated amount needed to supplement the buyer’s discounted payment over the two-year period.

From Washington Post ● Sep. 14, 2022

Melgar: The buy-down will sometimes allow the purchaser to consider a larger home, especially for first-time home buyers who anticipate a growing family.

From Washington Post ● Sep. 14, 2022

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