buydown

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noun

An accelerated repayment of the principal of a loan.

Similar
prepaymentacceleratedlump sum amortization
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Meanings

nounbuydown (plural buydowns)

plural buydowns · alternative buy-down

  1. businessAn accelerated repayment of the principal of a loan.

    Synonyms: prepayment, accelerated, lump sum amortization

  2. mortgage financeA payment by a third-party to a lender to reduce some of all of the payments otherwise required, especially in first few years of the loan, thereby enhancing the apparent quality of the loan.

Synonyms & antonyms

nounAn accelerated repayment of the principal of a loan.

Similar
prepaymentacceleratedlump sum amortization

Origin

From buy + down.

Full word history & related roots →
Cite this entry
APA

buydown. (n.d.). In WatkinsX Dictionary. Retrieved November 3, 2026, from https://dictionary.watkinsx.com/word/buydown

MLA

“buydown.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/buydown. Accessed November 3, 2026.

Chicago

WatkinsX Dictionary, s.v. “buydown,” accessed November 3, 2026, https://dictionary.watkinsx.com/word/buydown.

Source: buydown on Wiktionary, CC BY-SA 4.0.