Finance
A '2-1 buydown' temporarily reduces the mortgage interest rate by:
A1% in the first year and 2% in the second year
B2% in the first year and 1% in the second year, then the note rate from year 3✓ Correct
C2% for the full loan term
DThe first two payments only
Explanation
A 2-1 buydown reduces the rate by 2% in year 1 and 1% in year 2, then reverts to the note rate from year 3 onward. It's often paid by sellers or builders to help buyers qualify.
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