Finance
A 'buydown' in NC mortgage financing refers to:
AReducing the purchase price through negotiation
BPaying discount points upfront to obtain a lower interest rate✓ Correct
CA government subsidy reducing the buyer's down payment
DPaying off the mortgage early without penalty
Explanation
A mortgage buydown involves paying discount points (prepaid interest) at closing to obtain a reduced interest rate, lowering the borrower's monthly payments. Each point equals 1% of the loan amount.
Related North Carolina Finance Questions
- A NC lender's 'origination fee' on a mortgage loan represents:
- The 'secondary mortgage market' in NC real estate involves:
- Private Mortgage Insurance (PMI) is typically required on conventional loans when the down payment is less than:
- A borrower in North Carolina has a gross monthly income of $5,500 and monthly debts of $800. What is the maximum monthly housing payment allowed under a 28% front-end DTI ratio?
- An assumable mortgage allows the buyer to:
- Discount points on a mortgage loan are used to:
- An 'assumable mortgage' in NC allows:
- A conventional loan is best described as:
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