Finance
A Tennessee adjustable-rate mortgage (ARM) with a 2/1 buydown initially has a lower rate. After the buydown period, the rate:
ADecreases permanently
BReverts to the note rate or adjusts based on the index✓ Correct
CIs forgiven by the lender
DConverts to a fixed rate automatically
Explanation
A buydown temporarily reduces the interest rate, but after the buydown period the rate reverts to the original note rate (for temporary buydowns) or adjusts per the ARM terms.
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