Finance
In Arizona, 'seller-paid points' on a buyer's mortgage loan serve to:
AIncrease the seller's taxable income
BReduce the buyer's interest rate, which can help the buyer qualify or reduce monthly payments✓ Correct
CBenefit the seller more than the buyer
DCircumvent the lender's underwriting guidelines
Explanation
Seller-paid discount points are a form of seller concession where the seller pays points on behalf of the buyer to reduce the buyer's interest rate. This can help buyers qualify by lowering the monthly payment or simply save money over time.
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