buydown
See also: buy-down
English
editAlternative forms
editEtymology
editNoun
editbuydown (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
edit- (accelerated repayment of principal): prepayment, accelerated or lump-sum amortization.