Finance
What is an 'interest rate buydown' in Nevada real estate transactions?
AA lender reducing the rate due to borrower complaints
BPaying discount points or concessions to temporarily or permanently reduce the loan's interest rate — often offered by Nevada sellers or builders as an incentive✓ Correct
CA government program reducing rates for Nevada veterans
DAn automatic rate reduction after 3 years of on-time payments
Explanation
A buydown allows the borrower to pay lower initial interest rates. A temporary buydown (2-1 buydown) reduces the rate for the first 1–2 years; a permanent buydown pays discount points to permanently lower the rate. Nevada sellers and builders commonly use buydowns as closing cost concessions.
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