Finance
In Arizona, a 'buydown' mortgage involves:
AThe lender reducing the principal balance at closing
BPrepaying points to reduce the interest rate, either temporarily or permanently✓ Correct
CThe government subsidizing the interest rate for low-income buyers
DThe seller providing seller financing
Explanation
A mortgage buydown involves paying additional points upfront to lower the interest rate. A temporary buydown (like 2-1 buydown) reduces the rate for the first 1-2 years; a permanent buydown reduces it for the life of the loan.
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