If you have an interest rate subsidy from a home builder or real estate developer,you have a

Question

Quizplus · Accepted Answer

A buy-down is a type of mortgage where the home builder or real estate developer subsidizes the buyer's interest rate for a certain period of time, typically for the first few years of the mortgage. This lowers the monthly payments for the buyer and is meant to make the home more affordable. The subsidy is usually paid upfront by the builder, which is why it is sometimes referred to as a "prepaid interest mortgage." The buyer's payments will gradually increase over the subsidized period until they reach the full, unsubsidized amount.

If You Have an Interest Rate Subsidy from a Home