Finance
A 'points' buy-down in a mortgage means the borrower pays upfront to:
AReduce the loan origination fee
BPermanently or temporarily lower the interest rate✓ Correct
CIncrease the loan amount
DExtend the loan term
Explanation
Discount points are prepaid interest paid at closing to permanently reduce the interest rate on the mortgage. A temporary buy-down (like a 2-1 buy-down) temporarily reduces the rate for the first few years.
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