ⓘ Buydown

                                     

ⓘ 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. The seller of the property usually provides payments to the mortgage lending institution, which, in turn, lowers the buyers monthly interest rate and therefore monthly payment. This is typically done for a period of about one to five years. In a sellers market the seller might raise the purchase price to compensate for the costs of the buydown but in most markets it would not be to their advantage to use a buydown as an enticement if they are going to offset the benefit by raising the price. In most cases, the buydown does not even involve the seller. It is an arrangement between the lender and the buyer.

You may also use the buydown option on a refinance.

                                     
  • seller s points to pay for prepaid costs, mortgage interest or temporary rate buydowns This means that if you have money in savings that you must retain, you
  • 2012 however the McDonnell administration authorized a n00 million buydown suspension of the tolls until January 2014. This also gave time for a civil
  • announced a further, 82.5 million buydown of the tolls through the completion of the construction. This buydown reduced tolls to 75 - cents off peak and
  • the costs of furnishings and other personal property to the mortgage. Buydown mortgages allow the seller or lender to pay something similar to points
  • instituting a foreclosure proceeding. Hatch also created an Interest Buydown Program in 1985 to pay a portion of the farmer s interest on farm loans