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.

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Example Sentences

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

From Washington Post • Sep. 14, 2022

The party providing the buy-down funds will normally make a lump-sum payment into an escrow account at closing.

From Washington Post • Sep. 14, 2022

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

From Washington Post • Sep. 14, 2022

Melgar: A buy-down is a mortgage financing technique in which the buyer obtains a lower interest rate for the first few years of the mortgage.

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