Finance
An 'interest rate buydown' in Colorado refers to:
AA feature allowing the borrower to skip interest payments
BPaying upfront points to permanently or temporarily lower the mortgage interest rate✓ Correct
CThe lender's right to raise the rate at renewal
DRefinancing to a lower rate without closing costs
Explanation
A buydown involves paying discount points at closing to reduce the interest rate. A permanent buydown lowers the rate for the loan's life; a temporary buydown (like a 2-1 buydown) lowers the rate for the first few years. Sellers or builders often pay for buydowns as a concession.
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