Finance
A permanent buydown in Nebraska mortgage financing refers to:
AUsing points to temporarily reduce the rate for the first 1-3 years
BUsing discount points to permanently reduce the interest rate for the life of the loan✓ Correct
CThe seller's contribution to buyer closing costs
DConverting an ARM to a fixed rate
Explanation
A permanent buydown uses discount points paid at closing to permanently reduce the mortgage interest rate for the entire loan term, reducing monthly payments and total interest paid over time.
Related Nebraska Finance Questions
- An adjustable-rate mortgage (ARM) in Nebraska features:
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- A buyer purchases a $200,000 home with an FHA loan requiring a 3.5% down payment. What is the down payment amount?
- An FHA loan in Nebraska requires a minimum down payment of:
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