2-1 buydown


Mortgage that in the beginning has two temporary interest rates. These rates will then increase in stair-step movements until a permanent interest rate is set. Sometimes used as an incentive by home builders to attract buyers. Initial reductions in the interest rate are either paid for by the buyer or by the builder.

Mentioned in these terms

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
200-day moving average 2/28 adjustable-rate mortgage