Finance
In Washington, a 'buy-down mortgage' involves:
AThe buyer reducing the loan amount through a large down payment
BPoints paid to reduce the interest rate, either permanently or for an initial period✓ Correct
CThe lender buying down the property's appraised value
DThe buyer buying out the seller's existing mortgage
Explanation
A buy-down involves paying discount points upfront to reduce the loan's interest rate. In a temporary buy-down (e.g., 2-1 buy-down), the rate is reduced for the first 1-2 years. In a permanent buy-down, the rate is reduced for the loan's entire term.
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