A buydown refers to:
A)a mortgage that starts with unusually low payments that rise over several years to a fixed payment.
B)financing made available by a builder or seller to a potential new-home buyer at well below market interest rates, often only for a short period.
C)a fixed-rate mortgage with payments that increase over a specific period.
D)a mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties.
E)a loan on which payments that equal half the regular annual interest amount are made every 6 months.

Question

Quizplus · Accepted Answer

A buydown is a financing arrangement where a builder or seller offers a lower interest rate to a buyer for a short period, making the home more affordable initially.

A Buydown Refers To