different between prepayment vs buydown
prepayment
English
Etymology
pre- +? payment
Noun
prepayment (plural prepayments)
- A payment in advance.
- (accounting) An asset recognized in respect an expense incurred in a period for which the benefit will be received in a future period.
Translations
Further reading
- prepayment on Wikipedia.Wikipedia
prepayment From the web:
- what prepayment means
- what prepayment in accounting
- what's prepayment penalty
- what prepayments are deductible
- what prepayments and accruals
- what's prepayment penalty mean
- what prepayment risk
- prepayment what does it mean
buydown
English
Alternative forms
- buy-down
Etymology
buy +? down
Noun
buydown (plural buydowns)
- (finance) An accelerated repayment of the principal of a loan.
- (mortgage finance) 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.
Synonyms
- (accelerated repayment of principal): prepayment, accelerated or lump-sum amortization.
Related terms
- buy down
buydown From the web:
- what is buydown in mortgage
- what are buydown points
- what is a buydown cost
- what is a buydown in insurance
- what is a buydown subsidy
- what is a buydown fee
- what are cigarette buydowns
- what is a buydown in retail
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