Buy-Down Mortgage

In this weak real estate market, the buy-down mortgage is beginning to become common again. A buy-down mortgage is one where the interest rate on the loan is bought down by making some type of a payment to the lender. The twist in this case, however, is the party making the buy-down. It should be the seller and should be used as an incentive to move the property. This is particularly true for developers. If you are buying from a developer, try to make this part of the deal.