A type of financing made available by a builder or seller to a potential new-home buyer at interest rates well below market interest rates, often only for a short period, is termed a:
A)conventional mortgage.
B)convertible ARM.
C)buydown.
D)two-step ARM.
E)growing equity mortgage.

Question

Quizplus · Accepted Answer

A buydown is a financing technique where the seller or builder subsidizes the mortgage by lowering the interest rate for the first few years of the loan. This makes the initial payments more affordable for the buyer.

A Type of Financing Made Available by a Builder or Seller