Last reviewed 10-31-2026Short-Sale.com Editorialglossary
Limited Buydown Mortgage
FreddieMac
Updated 10-31-2026
Limited Buydown Mortgage
A Mortgage with a temporary subsidy buydown plan for which: The buydown plan extends for two years or less after the first scheduled payment date and The effective interest rate during the buydown period is two percentage points or less below the Note Rate of the Mortgage, regardless of the duration of the buydown period
FreddieMac Glossary
FreddieMac · p. 24
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