A 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 as a ____________.

Question

A 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 as a ____________. ​

Quizplus · Accepted Answer

The term "buydown" refers to a type of mortgage financing in which the seller or builder subsidizes the buyer's interest payments for a certain period, usually one to three years. This allows the buyer to enjoy lower monthly payments at the beginning of the loan term, before the interest rate resets to the prevailing market rate. Buydowns can make homes more affordable for first-time buyers or for those who have limited resources for a down payment or higher monthly payments.

A Financing Made Available by a Builder or Seller to a Potential