As it is understood, a buydown is a technique for financing mortgages. This helps buyers/borrowers try to get a lower rate of interest for the initial mortgage years or throughout the whole mortgage lifecycle. The buydown account is where this transaction majorly takes place.
The buydown account is the account where the mortgage financing technique of buydown is implemented. This is the account where the buydown funds are either deposited or where there is a contribution by the seller of any property that is mortgaged. Payments are often made from buydown accounts as well.
The buydown account is naturally a part of the real estate segment or industry, especially since buydown financing techniques are common for several borrowers.
