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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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