What Is A Buydown

Answer for "What is a buydown?"

Ann Dempsey real estate agent
  Berkshire Hathaway Home Services Hodnett Cooper Real Estate

A type of financing in which a developer or seller arranges for the buyer to get a loan at a rate below the current market rate. The developer or seller pays interest costs in order to lower the interest rate but usually raises the price of the house to recoup this loss.

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