Mortgage Glossary

Buydown
When the lender and/or the home builder subsidizes the mortgage by lowering the interest rate during the first few years of the loan. While the payments are initially low, they will increase when the subsidy expires.

Mortgage Glossary - B
5-Year Balloon Mortgage 7-Year Balloon Mortgage Balloon (Payment) Mortgage Bank Draft Bankruptcy	Billing Error Binder or "Offer to Purchase" Borrower Bridge Loan Broker	Building Line or Setback Business Days Buydown