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Buydown
Paying more money to get a lower interest rate.
This is called a permanent buydown, and it is used in conjunction with discount points.
The more points, the lower the rate.
A temporary buydown is a fixed-rate mortgage that starts at a reduced rate for the first period and then gradually increases to its final note rate.
A temporary buydown for two years is called a 2-1 buydown. For three years, it's called a 3-2-1 buydown.
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