Question

Common purpose(s) of a "buydown" of an interest rate would be to:________.

Answer 1

Answer:

D) All of the above

Explanation:

A buydown can be defined as an act of paying a specified amount of money to a lender in exchange for a lower interest rate, in order to reduce the amount to be paid periodically such as for a home-buyer.

The common purposes of a "buydown" of an interest rate would be to:

1. To help a buyer to afford a more expensive home.

2. To help a buyer qualify for a home more easily.

3. To help the seller make their home more attractive to a prospective buyer.