Finance
A point on a mortgage loan is equal to:
A1% of the loan amount✓ Correct
B1% of the purchase price
C$1,000 regardless of loan size
D0.5% of the loan amount
Explanation
One point equals 1% of the loan amount. Discount points are prepaid interest that reduces the loan's interest rate. Origination points are fees charged by the lender for making the loan.
Related Colorado Finance Questions
- What is the maximum loan amount for a conforming conventional loan in most Colorado counties (2024 baseline)?
- A Colorado property has an NOI of $48,000 and sells at a 6% capitalization rate. What is the indicated value?
- What is the significance of the conforming loan limit for Colorado mortgage borrowers?
- A Colorado property owner using a 'like-kind exchange' (1031 exchange) can defer capital gains taxes by:
- Most conventional lenders prefer a back-end (total) DTI ratio no higher than:
- A 'balloon mortgage' in Colorado is characterized by:
- A Colorado buyer obtains an FHA loan to purchase a $350,000 home. The FHA minimum down payment is 3.5%. What is the minimum down payment required?
- What is the debt-to-income (DTI) ratio that most conventional lenders prefer to not exceed for a borrower's total monthly debt?
Practice More Colorado Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Colorado Quiz →