Real Estate Glossary

The following are some common real estate terms you may run across during the process of buying or selling your home.

Buydown

With a buydown, the seller or borrower pays an amount to the lender so that the lender can offer a lower rate and lower payments, during the earlier portion of the loan term. If the seller pays, he may increase the sales price to co ver the cost of the buydown. Buydowns can occur in all types of mortgages; fixed rate, interim fixed and adjustables.

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