Definition from Nolo’s Plain-English Law Dictionary
A subsidy on the interest rate a homebuyer pays on a loan; often used (usually by developers) as an incentive to encourage homebuyers to purchase a particular home or loan. For example, if the homebuyer's interest rate is 6%, a developer might offer to pay 2% of that the first year and 1% the second year, to lower the buyer's monthly payment.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:20 pm