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
Bigger builders can buy land cheaper, handle volatility in materials costs (especially prudent during supply-chain disruptions like tariffs or an oil shock), and offer mortgage-rate buydowns that rivals can’t match.
—Eva Roytburg, Fortune, 1 June 2026
Seller concessions and mortgage rate buydowns are increasingly common, helping buyers with affordability.
—Sara B. Hansen, Denver Post, 29 May 2026
Even so, a homebuyer could use an adjustable mortgage, an interest-only mortgage or a permanent rate buydown to make the payment more affordable.
—Jeff Lazerson, Oc Register, 26 May 2026
In some cases, lenders may cover the costs of buydown for you (either partially or in full), if the market is particularly slow.
—Aly J Yale, CBS News, 24 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
Longer listings typically mean sellers become more receptive to inspection requests, repair credits, and rate buydowns.
—Allison Palmer, Miami Herald, 22 Dec. 2025
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Eva Roytburg, Fortune, 1 June 2026
Seller concessions and mortgage rate buydowns are increasingly common, helping buyers with affordability.
—Sara B. Hansen, Denver Post, 29 May 2026
Even so, a homebuyer could use an adjustable mortgage, an interest-only mortgage or a permanent rate buydown to make the payment more affordable.
—Jeff Lazerson, Oc Register, 26 May 2026
In some cases, lenders may cover the costs of buydown for you (either partially or in full), if the market is particularly slow.
—Aly J Yale, CBS News, 24 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
Longer listings typically mean sellers become more receptive to inspection requests, repair credits, and rate buydowns.
—Allison Palmer, Miami Herald, 22 Dec. 2025
Cite this Entry
“Buydown.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/buydown. Accessed 4 Jun. 2026.
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