A Buydown Refers to A

Multiple Choice

A buydown refers to a:

A) mortgage that starts with unusually low payments that rise over several years to a fixed payment.
B) financing made available by a builder or seller to a potential new-home buyer at well below market interest rates,often only for a short period.
C) fixed-rate mortgage with payments that increase over a specific period.
D) mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties.
E) loan on which payments which equal half the regular annual interest amount are made every six months.