Home › Words › B › buydownbuydownbuydown · noun — an accelerated repayment of the principal of a loan.Definition from Wiktionary (CC BY-SA 3.0).EtymologyFrom buy + down.nounAn accelerated repayment of the principal of a loan.A payment by a third-party to a lender to reduce some of all of the payments otherwise required, especially in first few years of the loan, thereby enhancing the apparent quality of the loan.Definitions & examples from Wiktionary (CC BY-SA 3.0).Words closest in meaningBy meaning, not spelling — each word's AI semantic fingerprint, nearest first.amortization 54% match — The reduction of loan principal over a series of payments. vs buydown →borrowback 52% match — An arrangement in which an asset is sold or given to another, and then borrowed back from the trust or person to whom it was sold or given. Typically, this is done either to take advantage of a lower tax rate on the part of the one to whom the asset is given, or to allow a trust to earn a higher rate of interest than that available from a bank. vs buydown →drawdown 51% match — The act of reduction or depletion (including through withdrawal or utilization). vs buydown →forepayment 51% match — payment made in advance vs buydown →preborrowing 50% match — Prior to borrowing. vs buydown →homebuying 49% match — The purchase of a house. vs buydown →buyback 49% match — The repurchase of something previously sold, especially of stock by the company that issued it. vs buydown →refinancing 48% match — One or more loans or other borrowings that repay and replace previous financings. vs buydown →