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
In other cases, the lender or seller will pay for a temporary buydown to help close the deal.
—David McMillin, CNBC, 30 Sep. 2025
In our own work, performing market studies for the builders, the incentives (particularly mortgage-rate buydowns) worked very well at first, but are having less of a stimulative effect on sales now.
—Brad Hunter, Forbes.com, 4 Aug. 2025
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David McMillin, CNBC, 30 Sep. 2025
In our own work, performing market studies for the builders, the incentives (particularly mortgage-rate buydowns) worked very well at first, but are having less of a stimulative effect on sales now.
—Brad Hunter, Forbes.com, 4 Aug. 2025
Cite this Entry
“Buydown.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/buydown. Accessed 10 Nov. 2025.
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