different between prepayment vs buydown

prepayment

English

Etymology

pre- +? payment

Noun

prepayment (plural prepayments)

  1. A payment in advance.
  2. (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)

  1. (finance) An accelerated repayment of the principal of a loan.
  2. (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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