Finance
A 'points' charge on a Hawaii mortgage loan represents:
AThe lender's profit margin
BPrepaid interest equal to 1% of the loan amount per point✓ Correct
CA fee charged by the appraiser
DThe title company's fee
Explanation
Mortgage points (discount points) are prepaid interest. Each point equals 1% of the loan amount. Paying points up front reduces the interest rate over the life of the loan.
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