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- A buydown allows homebuyers to obtain a lower interest rate when taking out a mortgage loan. Buydowns can save homeowners money on interest over the life of the loan. A buydown can involve purchasing discount points against the mortgage loan, which may require payment of an up-front fee.www.investopedia.com/terms/b/buydown.asp
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Buydown: Definition, Types, Examples, and Pros & Cons
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WEBMar 20, 2024 · A buydown is a way for a borrower to obtain a lower interest rate by paying discount points at closing. Discount points, …
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WEBOct 31, 2022 · A temporary buydown reduces the home buyer's monthly payments in the first year, or sometimes in the first two or three years. Instead of making the mortgage's full...
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