buydown
noun
buy·down
ˈbī-ˌdau̇n 
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
… they negotiated an interest rate buydown that effectively lowered their mortgage rate …—
Kathleen Pender
Kathleen PenderThough 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
Bailey SchulzExamples of buydown in a Sentence
Recent Examples on the Web
With the permanent rate buydown, the lower rate lasts for the loan's full term.
—Tim Maxwell, CBS News, 7 Apr. 2026
Also, buydowns can be a smart way to use credits from a seller.
—Andrea Riquier, USA Today, 27 Mar. 2026
In some submarkets, Rude said, builders are offering price reductions and interest-rate buydowns to move inventory — incentives that can give new homes an advantage over the resale market.
—Travis Webb, Austin American Statesman, 1 Mar. 2026
The Glassers and their real estate agent, Trinie Johnson with Kuper Sotheby’s International Realty, negotiated with the custom-home builder to reduce closing costs and secure a mortgage rate buydown.
—Lily O'Neill, San Antonio Express-News, 23 Feb. 2026
On top of that, homebuilders will keep offering rate buydowns to lower mortgages and clear unsold inventory.
—Jason Ma, Fortune, 9 Feb. 2026
Longer listings typically mean sellers become more receptive to inspection requests, repair credits, and rate buydowns.
—Allison Palmer, Miami Herald, 22 Dec. 2025
This includes both origination points and buydown points.
—Jeff Lazerson, Oc Register, 4 Dec. 2025
Not all lenders offer mortgage buydowns but Rocket Mortgage offers two or more discount points on 30-year fixed, jumbo, VA and FHA loans.
—David McMillin, CNBC, 30 Sep. 2025
Examples are automatically compiled from online sources to
show current usage.
Read More
Opinions expressed in the examples do not represent those of Merriam-Webster or its editors.
Send us feedback.
Tim Maxwell, CBS News, 7 Apr. 2026
Also, buydowns can be a smart way to use credits from a seller.
—Andrea Riquier, USA Today, 27 Mar. 2026
In some submarkets, Rude said, builders are offering price reductions and interest-rate buydowns to move inventory — incentives that can give new homes an advantage over the resale market.
—Travis Webb, Austin American Statesman, 1 Mar. 2026
The Glassers and their real estate agent, Trinie Johnson with Kuper Sotheby’s International Realty, negotiated with the custom-home builder to reduce closing costs and secure a mortgage rate buydown.
—Lily O'Neill, San Antonio Express-News, 23 Feb. 2026
On top of that, homebuilders will keep offering rate buydowns to lower mortgages and clear unsold inventory.
—Jason Ma, Fortune, 9 Feb. 2026
Longer listings typically mean sellers become more receptive to inspection requests, repair credits, and rate buydowns.
—Allison Palmer, Miami Herald, 22 Dec. 2025
This includes both origination points and buydown points.
—Jeff Lazerson, Oc Register, 4 Dec. 2025
Not all lenders offer mortgage buydowns but Rocket Mortgage offers two or more discount points on 30-year fixed, jumbo, VA and FHA loans.
—David McMillin, CNBC, 30 Sep. 2025
Cite this Entry
“Buydown.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/buydown. Accessed 22 Apr. 2026.
Copy CitationLove words? Need even more definitions?
Merriam-Webster unabridged
