Mortgage rate buydown

{
  "id": "MLC-T-LAW-003298",
  "term": "Mortgage rate buydown",
  "field": "Law",
  "definition": "A financing technique where a borrower or seller pays an upfront fee to reduce the interest rate on a mortgage for a certain period, or for the entire loan term. This payment effectively subsidizes the interest rate, resulting in lower monthly payments for the borrower. Buydowns can be temporary, such as a 2-1 buydown, or permanent.",
  "url": "https://mlchart.com/terminology/law/mortgage-rate-buydown/"
}