buydown

buydown definition - business

buydown

A mortgage-financing arrangement in which a real estate purchaser obtains reduced mortgage payments (sometimes temporarily) when the seller provides funds to the lender. Essentially a buydown means a seller subsidizes the buyer, who is then better able to qualify for a loan.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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