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."
separable
buy down
C1 formal separable transitive
(Finance) To pay an upfront sum of money in order to reduce a mortgage or loan interest rate.
In plain English
To pay extra money at the start of a loan so that your monthly payments are smaller because the interest rate is lower.
What does "buy down" mean?
One main meaning — here's how to use it.
Literal vs figurative
Words literally mean
To buy the interest rate down (lower).
Actually means
To pay extra money at the start of a loan so that your monthly payments are smaller because the interest rate is lower.
Usage tip
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.
Words that pair with "buy down"
Natural word combinations native speakers use most often.
rate interest rate mortgage loan points cost
How to conjugate "buy down"
The five tense forms you'll use most often.
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
Hear "buy down" in the wild
Listen to native speakers using "buy down" in real YouTube videos — click a clip to watch it on Looplines.
Other ways to say "buy down"
Swap in when you want variety — tap a linked one to explore it.
discount the rate lower the rate pay points reduce the rate
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