Finance
A Connecticut lender offers a '3/2/1 buydown' on a mortgage. This means the interest rate is reduced by:
A3% for years 1-3, then returns to the note rate
B3% in year 1, 2% in year 2, 1% in year 3, then increases to the full note rate from year 4✓ Correct
C1% per year for the first 3 years
D2% for the first two years, then 1% for year 3
Explanation
A 3/2/1 buydown temporarily reduces the note rate: year 1 is 3% below the note rate, year 2 is 2% below, year 3 is 1% below, and from year 4 the borrower pays the full note rate. This is often seller-funded to help buyers qualify.
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