Mortgage Buy-Down

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January 1, 1 6 min read Definitions

Compressed Buy-Down Mortgage Buy-Down Rate Reduction Real Estate Financing Adjustable-Rate Mortgages (ARM)

A compressed buy-down is a variant of the traditional buy-down mortgage where the extent of the rate reduction changes at 6-month intervals. This type of buy-down features accelerated rate adjustments compared to the more common annual adjustments seen in gradual buy-downs.