Prepayment is a synonym of buydown.
As nouns the difference between prepayment and buydown
is that prepayment
is a payment in advance while buydown
is (finance) an accelerated repayment of the principal of a loan.
A payment in advance.
(finance) An 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.
* (accelerated repayment of principal) prepayment, accelerated or lump-sum amortization.