buydown

buydown
a) An accelerated repayment of the principal of a loan.
b) 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.
See Also: buy down

Wikipedia foundation.

Игры ⚽ Нужна курсовая?

Look at other dictionaries:

  • Buydown — закладная, ежемесячная плата по которой состоит из основной суммы и процентов. При этом в течение начального периода часть выплат осуществляется третьей стороной, с тем чтобы снизить ежемесячные выплаты заемщика. См. также: Закладные Финансовый… …   Финансовый словарь

  • 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 — A lump sum payment made to a creditor by a borrower or a third party to reduce the amount of some or all of the borrower s periodic payments to repay the indebtedness. American Banker Glossary 1) A lump sum payment made to the creditor by the… …   Financial and business terms

  • 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

  • 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

  • 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

  • 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… …   Law dictionary

Share the article and excerpts

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