A buydown is when a fixed rate mortgage interest rate is bought down for a period of time, typically 1-3 years. Buying down will only change the interest rate for a period of time and then the rate will go back to the note rate. Buying down can be necessary to qualify for a higher loan amount or because the borrower needs a lower payment now but expects to be able to afford the higher payment later.

Answered by Admin - 15 months ago