buy down

Buydown

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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References in periodicals archive ?

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.

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(Sometimes an effective way to buy down a hiring solution is to terminate the issue at hand.

Hiring? Buy the solution

When asked about their top challenges in working with retailers, CPG firms cited pressure to buy down price (31%) and retail execution or compliance with promotions (31%).

Manufacturers cite challenges in working with retailers

Golden Predator retains a 0.5 percent NSR which the company has the option to buy down to 0.25 percent for USD375,000.

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Ace is now offering to buy down the windstorm deductible for captives (or companies buying direct) with an aggregate stop-loss policy.

Captives weather financial storm: event coverage of the Vermont Captive Insurance Association 24th Annual Conference: Sheraton Hotel & Conference Center, Burlington, Vt., Aug. 11-13

Private labels continue to steal share from the brands as consumers use a "buy down" approach for cost reasons." Mr.

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However, under the buy down agreement the WB has converted the credit into grant with a support of Bill and Melinda Gates Foundation.

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Federal "rescue" dollars should be directed to buy down mortgage rates--a half-million additional homes could be sold if interest rates were lowered by just 1 percentage point.

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'hey can buy down here and get change back from their million."

Welcome to the gayborhood: once-sleepy blue-collar suburbs are attracting large numbers of gay people with cheaper homes and the promise of safe streets and better schools. And the gays are bringing a strong sense of community

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."

Racing: Down Royal in racing guarantee following sale to developers

Under the new regulations, a mortgage broker or loan officer may not label a charge or fee payable to the mortgage broker, loan officer or company affiliate as a "discount point" unless the mortgage broker or loan officer is the lender in the transaction, or the fee is a reimbursement for sums advanced by the broker, officer or affiliate company to the lender to "buy down" the interest rate on the loan.