Dec 31 , 2015

Tampa School of Real Estate

Buydown

Definition: A financing method in which points are paid by the seller or developer that lowers (buys down) the effective interest rate paid by the buyer/borrower, therefore reducing the amount of the monthly payment for a set period of time

Pronunciation:

Used in a Sentence:    In order to have lower payments, the buyer decided to buydown the interest rate on his mortgage.

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