mortgage rate buydown

mortgage rate buydown
A subsidy on the interest rate a homebuyer pays on a loan; often used (usually by developers) as an incentive to encourage homebuyers to purchase a particular home or loan. For example, if the homebuyer's interest rate is 6%, a developer might offer to pay 2% of that the first year and 1% the second year, to lower the buyer's monthly payment.
Category: Real Estate & Rental Property → Buying a House

Nolo’s Plain-English Law Dictionary. . 2009.

Игры ⚽ Поможем написать реферат

Look at other dictionaries:

  • Mortgage loan — Mortgage redirects here. For other uses, see Mortgage (disambiguation). Finance Financial markets …   Wikipedia

  • Buydown — A buydown is a mortgage financing technique where the buyer attempts to obtain a lower interest rate for at least the first few years of the mortgage. [ [http://dictionary.reference.com/browse/buydown Definition of buydown ] , Dictionary] The… …   Wikipedia

  • Buydown — A mortgage financing technique with which the buyer attempts to obtain a lower interest rate for at least the first few years of the mortgage, but possibly its entire life. The builder or seller or the property usually provides payments to the… …   Investment dictionary

  • buydown — / baɪdaυn/ noun US the action of paying extra money to a mortgage in order to get a better rate in the future …   Dictionary of banking and finance

  • builder buydown loan — A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buydown the mortgage rate to a lower level than the prevailing market loan rate for some period of time.… …   Financial and business terms

  • Builder buydown loan — A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buy down the mortgage rate to a lower level than the prevailing market loan rate for some period of time.… …   Financial and business terms

  • 3-2-1 Buydown — A type of mortgage with a series of three initial temporary start interest rates that increase in a stair step fashion until a permanent interest rate is reached. Lenders will charge for the temporary interest rate reductions. A 3 2 1 buydown is… …   Investment dictionary

  • 2-1 Buydown — A type of mortgage with a set of two initial temporary start interest rates that increase in stair step fashion until a permanent interest rate is reached. The initial interest rate reductions are either paid for by the borrower in order to help… …   Investment dictionary

  • Initial Rate Period — The period of an introductory or teaser interest rate on a mortgage or other loan. The initial rate period varies by loan type and can be as short as one month or as long as several years. Some loans, such as 2 1 or 3 2 1 buydown mortgages, have… …   Investment dictionary

  • ИМУЩЕСТВО НЕДВИЖИМОЕ — REAL ESTATE, REALTYИ.н. включает в себя землю, постройки и сооружения, постоянно находящиеся на нейИ.н. неюридический термин понятия недвижимая собственность (real property), включающего землю, здания и связанные с их использованием постройки и… …   Энциклопедия банковского дела и финансов

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”