buy down

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A prepayment on a loan, especially a mortgage, that reduces monthly payments thereafter. A buydown may temporarily reduce payments, for example, by reducing the loan's interest rate for a certain period. On the other hand, a permanent buydown reduces the interest rate by a lesser amount for the life of the loan. A buydown is often made by a third party, but this is not always the case.

buy down

To reduce the interest on a mortgage loan by paying discount points in order to buy down the rate. For residential loans, it rarely makes sense for borrowers to buy down their rate. In order to evaluate,ask for the amount of the monthly principal and interest payments with and without the reduced rate.Subtract the lower number from the larger number.This is the amount of your monthly savings. Divide your monthly savings into the price for the buy down. This provides the number of months you must pay on the mortgage before you will have saved enough money to pay for the discount points. Finally, ask yourself,“Do I realistically think I will own this property for that length of time?”If not,then do not pay the points.

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UO students on campus on a sunny Friday afternoon weren't too impressed by the tuition buy down - which reduces the $542 increase they were expecting next year by $90, to $452.
Also, sometimes captives and insurance buyers want to buy down the deductible to a lower level--say from $25 million to $10 million.
Lalas would not say how much the Galaxy's allocations were worth, but one of them was used to buy down the contract of Quaranta from $100,000 to $60,000, because MLS wanted to keep the 22-year-old American in the league.
A brief statement issued by the company said: "Merrion Property Group has agreed to buy Down Royal as part of our property portfolio and we don't envisage any changes to the golf club or racecourse.
The city will also buy down interest rates on housing rehabilitation loans for homes already owned by city employees or employees buying their primary residence in the designated area.
NACA helped me write my contract, which I presented to the seller stipulating that he buy down my points," Webb recalls.
This type of program allows the risk manager to buy down or purchase insurance for the self-insured retention layer that most contributes to the aggregate volatility.
Every dollar checked off would buy down a government bond or other form of debt.
Bluestone negotiated a $14MM loan extension with the current lender, restructured the ownership and management of the property and secured $3MM in new equity to buy down the loan.
We have helped 21 businesses and have given them up to $50 000 so that we buy down the risk by offering financial support.
NAI Bluestone implemented a similar strategy on a related 217 bed independent living facility in New Jersey, negotiating a $14 million loan extension, restructuring the ownership and management of the property and securing $3 million in new equity to buy down the loan.
Jumbo loan program features include qualified borrowers receiving a lender contribution of up to 3 percent of the purchase price (up to $20,000 to cover financing costs or to buy down the rate) and low down payments.