Finance
Wisconsin's 'interest rate buydown' in a mortgage loan allows a buyer to:
ASkip the first 3 months of mortgage payments
BPay upfront discount points to obtain a lower interest rate over the life of the loan (permanent buydown) or for an initial period (temporary buydown)✓ Correct
CReduce the principal balance at closing
DFinance the closing costs into the loan without fees
Explanation
A buydown involves paying discount points at closing to reduce the mortgage interest rate; a permanent buydown lowers the rate for the life of the loan, while a temporary buydown reduces it for an initial period.
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