A 3-2-1 buy-down mortgage refers to a type of mortgage which allows the borrower to lower the interest rate over the first three years through an up-front payment. In general, 3-2-1 buy-down loans.
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Buy down financial definition of buy down – Financial Dictionary – buy down. To reduce the interest on a mortgage loan by paying discount points in order to buy down the rate. For residential loans, it rarely makes sense for borrowers to buy down their rate.
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