buy down
C1 formal separable transitive
In simple words
To pay extra money at the start of a loan so that your monthly payments are smaller because the interest rate is lower.
Literal meaning: To buy the interest rate down (lower).
Meanings
1 C1 formal
(Finance) To pay an upfront fee to a lender in order to obtain a lower interest rate on a mortgage or loan.
"With rates rising, more buyers are choosing to buy down their mortgage rate by paying extra points at closing."
Grammar: separable
Usage notes
Primarily used in US mortgage and real estate finance. A borrower 'buys down the rate' by paying 'points' (fees) at closing. Not common outside financial or real estate contexts. Learners are unlikely to encounter this outside professional settings.
Commonly used with
rate interest rate mortgage loan points cost
Forms
Base
buy down
I/you/we/they
3rd person
buys down
he/she/it
Past simple
bought down
yesterday
Past participle
bought down
have + pp
-ing form
buying down
continuous
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Synonyms
reduce the rate pay points lower the rate discount the rate
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