A Buydown Refers To

question 18

Multiple Choice

A buydown refers to:

• A)a mortgage that starts with unusually low payments that rise over several years to a fixed payment.
• B)financing made available by a builder or seller to a potential new-home buyer at well below market interest rates, often only for a short period.
• C)a fixed-rate mortgage with payments that increase over a specific period.
• D)a mortgage that requires the borrower to pay only interest; typically used to finance the purchase of more expensive properties.
• E)a loan on which payments that equal half the regular annual interest amount are made every 6 months.

---

Definitions:

Smaller Buckets

A term used in project management and process optimization, referring to breaking down tasks or storage needs into smaller, more manageable units.

Lot-For-Lot Ordering

A inventory management strategy where exactly the quantity needed for production or demand is ordered, minimizing the inventory holding costs.

MRP Plan

Material Requirements Planning; a system for calculating materials and scheduling production to meet demand.

Gross Requirements

The total demand for an item, inclusive of direct and indirect requirements, before any adjustments for on-hand inventory or scheduled receipts.