buy-down

American  

[bahy-doun] / 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.

---

Example Sentences

See Examples For:

buy-down

The first-year rate on a buy-down is often referred to as the “start rate.”

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

For example, the interest rate on a 2-1 buy-down would be 2 percent below the note rate for the first year and 1 percent below the note rate for the second.

From Washington Post ● Sep. 14, 2022

Cox: The 2-1 buy-down program is a phenomenal way for buyers to ease into their new mortgage payment.

From Washington Post ● Sep. 14, 2022

Idziak: The cost to temporarily buy down the interest rate will depend on the size of the mortgage loan and the amount and duration of the buy-down.

From Washington Post ● Sep. 14, 2022