A payment to the lender from the seller, buyer, third party, or some combination of these, causing the lender to reduce the interest rate during the early years of the loan.
Money advanced by an individual (builder, seller, etc.) to reduce the monthly payments for a home mortgage either during the entire term or for an initial period of years. A "2-1" Buy down can be used to qualify a borrower who otherwise may not qualify for a loan by reducing the interest rate on the first two years of payments, thereby making the mortgage more affordable.
Money advanced by a seller, builder, or other party to a buyer in order to reduce the buyer's monthly payments for a home mortgage either for the entire term of the loan or for a designed period at the beginning of the term of the loan.