Finance
A 'point' in mortgage financing equals:
A0.1% of the loan amount
B1% of the loan amount✓ Correct
C$1,000 regardless of loan size
D1% of the purchase price
Explanation
One mortgage point equals 1% of the loan amount. Points may be paid to 'buy down' the interest rate (discount points) or as an origination fee. Paying points upfront reduces the monthly payment and total interest over the life of the loan.
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