Finance
Points on a mortgage loan are used to:
AIncrease the property's appraised value
BBuy down the interest rate, with each point equal to 1% of the loan amount✓ Correct
CProvide the borrower with cash at closing
DReduce the required down payment
Explanation
Discount points are prepaid interest paid at closing to reduce the interest rate. Each point equals 1% of the loan amount.
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