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

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

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

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