Finance
A point paid at closing on a mortgage equals:
A1% of the purchase price
B1% of the loan amount✓ Correct
C$1,000 regardless of loan size
D0.1% of the loan amount
Explanation
One mortgage point equals 1% of the loan amount. Points may be discount points (prepaid interest to lower the rate) or origination points (lender fees). For example, 1 point on a $300,000 loan = $3,000.
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