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Buy-downs typically are 30-year, fixed-rate mortgages in which the seller pays 2 percentage points of the interest rate the first year and 1 point

Okay, this is ambigious and confusing. Do they mean a negative amortization mortgage where only some of the interest is paid, or do they mean that the interest rate is actually 2% the first year and 1% the second year?

If the latter, then they shouldn't be using the phrase "percentage points".
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