What is a buy-down mortgage?
The Bankrate.com financial term of the day is: "Buy-Down Mortgage"
When you're buying a home, you can spend more now in exchange for lower interest costs later on through something called a buy-down mortgage. It's a home loan that lets you reduce your mortgage rate for a price, paid upfront in the form of discount points.
A buy-down mortgage lets you pay your way to a lower mortgage rate.
To shop for the perfect home loan, visit the Mortgage section at Bankrate.com.