Finance
Discount points paid on an Arizona mortgage loan:
AIncrease the interest rate to benefit the lender
BAre prepaid interest that lower the loan's interest rate✓ Correct
CCover the lender's origination costs with no effect on the rate
DAre refunded at closing if the loan is not approved
Explanation
Discount points are prepaid interest paid at closing. Each point equals 1% of the loan amount and typically lowers the interest rate by approximately 0.
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