Which of the following is FALSE concerning buydown loans?
A)They are often used during periods of high inflation
B)They always lower the rate on the loan for the borrower for the entire loan term
C)They help borrowers qualify for a loan
D)They can be offered by home builders

Question

Quizplus · Accepted Answer

Buydown loans do not always lower the rate on the loan for the borrower for the entire loan term. The rate reduction may only be temporary, such as for the first few years of the loan, after which the interest rate will increase to the original rate or above.

Which of the Following Is FALSE Concerning Buydown Loans