The table below shows the types of transactions that are eligible for temporary buydowns and are not eligible: the cost of a buyback operation is a down payment intended to reduce monthly mortgage payments. It is sometimes calculated and placed in a fiduciary account, where a certain amount corresponding to the difference in the amount of the temporary mortgage is paid each month. At other times, the cost of the buydown is treated as a traditional mortgage point. Everyone`s interest rates move on a business day. The interest rate that a particular consumer “receives” is a function of a series of variables such as credit type, down payment, creditworthiness, credit amount, points, closing costs and more. The current interest rate on a given date, which does not have points, is generally referred to as the “nominal rate”.