buy-down

[ bahy-doun ]

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

Cox: The escrow or buy-down account can be funded by the seller, the buyer, the lender or a third party, such as a Realtor.

From Washington Post

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

From Washington Post

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

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

From Washington Post

Idziak: A temporary buy-down is a cash payment that effectively lowers the borrower’s interest rate for a limited period, allowing borrowers to reduce their monthly payments during the early years of the mortgage.

From Washington Post