Please do not laugh at this question,but what is a “buydown”?
Thanx
We don’t laugh at questions here…just at the people asking them…
LOL, just kidding.
Buy Down - A payment of discounts points in exchange for a lower rate of interest. It has the effect of providing the lender with a greater yield today in exchange for a lower yield in the future. (See definition of “discount points” below.).
This definition is found in the Investiong Glossary (look to the column under “Site Navigation” to your left…
http://www.reiclub.com/real-estate-terms.php
Keith
you can also buy down a pre payment penalty