buydown

buydown definition - finance
A large, unscheduled payment made by a borrower to a creditor in order to reduce some or all of the borrowerÂ’s outstanding debt. If allowed by the terms of the loan, a buydown reduces the amount of the regular payment.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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