What is the buydown fee that the seller must pay to the, Financial Management

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What is the buydown fee that the seller must pay to the

You are a seller of an improved property and you wish to BUYDOWN the following mortgage loan as follows: Loan Amount: $700,000 Rate: 9% per annum Term: 30 years Buydown arrangement: Rate = 4% for year 1 5% for year 2 6% for year 3 9% thereafter What is the buydown fee that the seller must pay to the lender for this arrangement?

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