Finance
What does 'points' mean in the context of Alaska real estate financing?
AThe lender's required insurance premium
BPrepaid interest charged at closing, each point equaling 1% of the loan amount✓ Correct
CThe buyer's credit score expressed numerically
DThe number of days until the first mortgage payment
Explanation
One discount point equals 1% of the loan amount and is prepaid interest that typically lowers the loan's interest rate. Points are paid at closing and are sometimes called 'buying down the rate.'
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