Last reviewed 10-31-2026Short-Sale.com Editorialglossary
Temporary Interest-Rate Buydown
Fannie Mae
Updated 10-31-2026
Temporary Interest-Rate Buydown
A temporary reduction in the effective interest rate that a borrower pays during the early years of a mortgage term, which is made possible by the property seller or another acceptable party depositing a lump sum of money into a buydown account so that it can be released each month to reduce the borrower's payments.
Fannie Mae Glossary of Terms
Fannie Mae · p. 48
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