Builder buydown loan
Definition: [crh] A mortgage loan on newly developed property that the builder subsidizes during the early years of the developmeDefinition: nt. The builder uses cash to buydown the mortgage rate to a lower level than the prevailing market loan rate for some period of time. The typical buydown is 3% of the interest rate amount for the first year, 2% for the second year, and 1% for the third year (also Definition: referred to as a 3-2-1 buydown).
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