A Buydown Refers To

question 2

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 six months.

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Definitions:

Refractory Period

In physiological context, a period immediately following stimulation during which a nerve or muscle is unresponsive to further stimulation.

Neuron

A cell of the nervous system that is specialized to transmit information throughout the body.

Resting Pause

A brief period of rest or inactivity, especially used in the context of physical exercise or mental relaxation.

Sodium/Potassium Pumps

Cellular mechanisms that move sodium and potassium ions across the cell membrane to maintain appropriate concentration levels inside and outside the cell.