Tim and sue have obtained a buydown loan on their newly built home. which of the following statements is not true? a. they will have to make a large down payment. b. their interest rate will rise after the first few years. c. the builder paid a lump sum amount at closing to reduce the interest rate for a few years. d. the lender assumes tim and sue’s income will rise over the first few years of the loan.

a. They will have to make a large down payment.

Explanation:

Buy-down loan is a kind of loan where money is initially paid upfront, in order to reduce the interest amount and have small installments.

Therefore, in the given case when Tim and Sue obtained a buy-down loan they have to pay a big upfront amount, which can also be termed as large down payment.

Also interest rate does not affect, as it is constant.

As the lump sum amount is paid in beginning no lump sum amount is paid at the end of loan period.

There is no assumption for income on such loans, aiming to increase the income.

Final Answer

a. They will have to make a large down payment.

business modeling is correct

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi