Related Personal Financial Services - The following Debt Consolidation Loan Directory company listings are offered to assist you with the management of your debts and your personal finances. Also, feel free to review the rest of the sub-directories on DebtConsolidationLoan.com to shop for other finance products, such as personal loans and debt settlement.
- Debt Management Programs - Too many credit cards and other bills to make monthly payments on? Start here by reviewing and comparing different debt management options for getting help with your credit card bills and other monthly obligations.
- Debt Settlement - If you have too many credit cards and other small debts and are unable to make your payments, this form of debt negotiation that is a debt consolidation alternative may be right for you.
Buydown Definition
Define Buydown: A buydown is a mortgage loan financing technique which allows the buyer to obtain a lower mortgage interest rate for the first few years (usually one to five) of the home loan. In exchange, the financial institution, lender or broker offering the mortgage usually expects a monetary payment to compensate for the lowered interest rate.
In some cases, the home seller provides the money payment but usually the house buyer provides it, often by increasing the overall borrowed amount of the home mortgage loan.
The buydown does make some sense for many buyers. However, as the rate increases each year, the mortgage payment increases. But, most homeowner's incomes also increase on an annual basis. Furthermore, most home purchases incur a variety of associated expenses which tend to make available funds particularly scarce during the first few years of owning a house. However, homeowners should be aware that a buydown offers a lower interest rate, and hence lower payment, only for a fixed initial period. Your mortgage loan payments will increase like clockwork throughout the buydown period.
Glossary of Debt Consolidation and Personal Finance Terms
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