Finance
In Kansas, a '2/1 buydown' mortgage means the interest rate is:
AFixed for the first 2 years then adjustable
B2% below the note rate in year 1, 1% below in year 2, then at the full note rate from year 3 forward✓ Correct
C2% discount for buyers who pay 1 point
DFixed for 2 years then increases by 1% annually
Explanation
A 2/1 buydown reduces the interest rate by 2% below the note rate in the first year and 1% below in the second year, then the loan adjusts to the full contracted rate for the remaining term.
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