buydown

See also: buy-down

English

Alternative forms

buy-down

Etymology

buy +‎ down

Noun

buydown (plural buydowns)

(finance) An accelerated repayment of the principal of a loan.
(mortgage finance) A payment by a third-party to a lender to reduce some of all of the payments otherwise required, especially in first few years of the loan, thereby enhancing the apparent quality of the loan.

Synonyms

(accelerated repayment of principal): prepayment, accelerated or lump-sum amortization.

Related terms

buy down

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