Finance
A lender's 'rate sheet' in Arizona shows 'par rate' pricing. What does 'par' mean?
AThe highest available interest rate
BThe rate at which the lender neither pays yield spread premium nor charges discount points✓ Correct
CThe average rate for all mortgage products
DThe rate guaranteed for 90 days
Explanation
'Par' pricing means the interest rate at which the lender neither earns yield spread premium (lender credit) from the investor nor requires the borrower to pay discount points—essentially a zero-cost pricing level.
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