Finance
What is a 'buydown' in Kansas mortgage financing?
AThe buyer reducing the purchase price through negotiation
BPaying upfront points or fees to reduce (buy down) the mortgage interest rate, either permanently or temporarily✓ Correct
CThe lender reducing fees after loan approval
DThe seller paying the buyer's closing costs
Explanation
A buydown involves paying points (fees) upfront to reduce the mortgage interest rate. A 2-1 buydown reduces the rate by 2% in year 1 and 1% in year 2, then goes to the full rate.
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