buydown en · NOUN
Etymology
From buy + down.
Meanings
- An accelerated repayment of the principal of a loan.
- (qualifier: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.
Forms
| Spelling | Features | Labels | Source |
|---|---|---|---|
| buy-down | alternative | lexicographic | |
| buydowns | Number=Plur | lexicographic |
Relateds
Synonyms
lump sum amortization (accelerated repayment of principal) · accelerated (accelerated repayment of principal) · prepayment (accelerated repayment of principal)