buydown

A lump sum payment made to a creditor by a borrower or a third party to reduce the amount of some or all of the borrower's periodic payments to repay the indebtedness. American Banker Glossary
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1) A lump sum payment made to the creditor by the borrower or by a third party to reduce the amount of some or all of the consumer's periodic payments to repay the indebtedness. Bloomberg Financial Dictionary
2) mortgages in which monthly payments consist of principal and interest. During the early part of the loan, portions of these payments are provided by a third party to reduce the borrower's monthly payments. Bloomberg Financial Dictionary
In the context of project financing, refers to a one-time payment out of liquidated damages to reflect cash flow losses from sustained underperformance. Bloomberg Financial Dictionary

Financial and business terms. 2012.

Look at other dictionaries:

  • Buydown — закладная, ежемесячная плата по которой состоит из основной суммы и процентов. При этом в течение начального периода часть выплат осуществляется третьей стороной, с тем чтобы снизить ежемесячные выплаты заемщика. См. также: Закладные Финансовый… …   Финансовый словарь

  • 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. [ [http://dictionary.reference.com/browse/buydown Definition of buydown ] , Dictionary] The… …   Wikipedia

  • Buydown — A mortgage financing technique with which the buyer attempts to obtain a lower interest rate for at least the first few years of the mortgage, but possibly its entire life. The builder or seller or the property usually provides payments to the… …   Investment dictionary

  • buydown — noun a) An accelerated repayment of the principal of a loan. b) 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… …   Wiktionary

  • buydown — / baɪdaυn/ noun US the action of paying extra money to a mortgage in order to get a better rate in the future …   Dictionary of banking and finance

  • buydown — Fin the payment of principal amounts that reduce the monthly payments due on a mortgage …   The ultimate business dictionary

  • 3-2-1 Buydown — A type of mortgage with a series of three initial temporary start interest rates that increase in a stair step fashion until a permanent interest rate is reached. Lenders will charge for the temporary interest rate reductions. A 3 2 1 buydown is… …   Investment dictionary

  • 2-1 Buydown — A type of mortgage with a set of two initial temporary start interest rates that increase in stair step fashion until a permanent interest rate is reached. The initial interest rate reductions are either paid for by the borrower in order to help… …   Investment dictionary

  • builder buydown loan — A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buydown the mortgage rate to a lower level than the prevailing market loan rate for some period of time.… …   Financial and business terms

  • Builder buydown loan — A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buy down the mortgage rate to a lower level than the prevailing market loan rate for some period of time.… …   Financial and business terms

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