buydown
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See also: buy-down
English[edit]
Alternative forms[edit]
Etymology[edit]
Noun[edit]
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[edit]
- (accelerated repayment of principal): prepayment, accelerated or lump-sum amortization.