Meaning BUILDER BUYDOWN LOAN: A mortgage loan on newly developed property that the builder subsidizes during the early years of the development. The builder uses cash to buy down 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 referred to as a 3-2-1 buydown)
More terms such as Builder buydown loan in Dictionary B.
- Definition Beta:
- Examples fund's or a stock's risk in relation to the market or to an alternative benchmark. A beta of 1.5 means that a stock's excess return is expected to move 1.5 times the market excess builder buydown loan definition.
- Definition Bond Equivalent Yield:
- Examples Bond yield calculated on an annual percentage rate method. Differs from annual effective yield builder buydown loan explain.
- Definition Bidder:
- Examples A firm or person that wants to buy a firm or security builder buydown loan what is.
- Definition Blowout:
- Examples The rapid sale of all shares in a new securities offering. See: hot issue builder buydown loan meaning.
- Definition Bottom:
- Examples Refers to the base support level for market prices of any type. Also used in the context of securities to refer to the lowest market price of a security during a specific time-frame builder buydown loan abbreviation.
