Buydown at Real Estate Glossary

What is it? A financing technique used to reduce the monthly payments for the first few years ofa loan. Funds in the form of discount points are given to the lender by the builder or seller to buy down or lower the effective interest rate paid by the buyer, thus redu

Real Estate Definition Added By: Gabriel

Send To Friends!

If you'd like to send the Buydown definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -

We hope you now understand the meaning of Buydown. If you need any more information on this term, please don't hesitate to contact us.

Other Similar Real Estate Terms:

Real Estate Term Federal Home Loan Mortgage Corporation (Fhlmc) is Commonly known as Freddie Mac, a federally chartered corporation established in 1970 for the purpose of purchasing mortgages in the secondary market. Freddie Mac was created as a part of the savings association system and, while it is not so limited, it

Real Estate Term Front-End Ratio is The ratio of monthly housing cost (PITI) to gross monthly income. (See back-end ratio, PITI)

Real Estate Term Cost Approach is The process of estimating the value of a property by adding to the estimated land value. The appraisers estimate of the reproduction or replacement cost of the building, less depreciation. (See appraisal)

Real Estate Term Granting Clause is Words in a deed of conveyance that state the grantors intention to convey the property at the present time. This clause is generally worded as convey and warrant, grant, grant, bargain and sell or the like.

Real Estate Term Interest-only loan is The pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.