An advantage of a buy-down is that the interest rate subsidy from the home builder reduces the mortgage payments during the first few years of the loan.

Question

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A buy-down involves the home builder or seller providing a subsidy to lower the borrower's interest rate and monthly mortgage payments during the first few years of the loan. This can make homeownership more affordable in the short-term, which can be an advantage for some buyers.

An Advantage of a Buy-Down Is That the Interest Rate