Temporary Interest-Rate Buydown
Last updated 2026-08-01
Fannie Mae
Updated 2026-08-01
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 · pp. 46–49
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