variants or less commonly buy-down
plural buydowns also buy-downs
: any of various mortgage financing techniques in which an extra sum is paid to the lender up front in exchange for a lower interest rate for a set number of years or for the term of the loan
When first-time buyers Rachel Shatto and Randy Nelson purchased a home in Oakland in May, they negotiated an interest rate buydown that effectively lowered their mortgage rate, and thus their monthly payment, for the first two years. Kathleen Pender
Though a majority of buydowns are negotiated between buyers and lenders, sellers and builders also can offer the concession to attract buyers without reducing the listing price. Bailey Schulz

Word History

First Known Use

1974, in the meaning defined above

Time Traveler
The first known use of buydown was in 1974

Dictionary Entries Near buydown

Cite this Entry

“Buydown.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/buydown. Accessed 30 Dec. 2024.

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