Finance
Discount points paid at closing are used to:
AReduce the loan origination fees
BBuy down (reduce) the interest rate on the loan✓ Correct
CIncrease the borrower's credit score
DCover the cost of the appraisal
Explanation
Each discount point equals 1% of the loan amount and is paid at closing to buy down (permanently reduce) the mortgage interest rate. Borrowers who plan to stay in the home long-term may benefit from paying points.
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