Finance
A mortgage 'point' equals:
A0.5% of the loan amount
B1% of the loan amount✓ Correct
C$1,000 regardless of loan size
D1% of the purchase price
Explanation
One mortgage point equals 1% of the loan amount. Points may be paid to lower the interest rate (discount points) or as an origination fee.
Related Delaware Finance Questions
- What is the 'index' in an adjustable-rate mortgage (ARM)?
- What is 'seller concessions' in a Delaware real estate transaction?
- What is 'private mortgage insurance' (PMI) and when is it typically required in Delaware?
- What is the 'Community Reinvestment Act' (CRA) and how does it relate to Delaware lending?
- What is 'underwriting' in Delaware mortgage lending?
- What is 'points' in Delaware mortgage financing?
- What is 'hard money lending' in Delaware real estate?
- What is 'Regulation B' in Delaware real estate lending?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →