Finance
What is 'points' in the context of a Delaware mortgage?
AThe number of properties a buyer has purchased
BUpfront fees paid to a lender, with one point equaling 1% of the loan amount, often used to buy down the interest rate✓ Correct
CA lender's credit score metric
DThe number of comparable properties used in the appraisal
Explanation
Points (also called discount points) are upfront fees paid to the lender at closing. One point = 1% of the loan amount. Paying points 'buys down' the interest rate, reducing monthly payments over the life of the loan.
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