Finance
What is 'points' in the context of an Idaho mortgage loan?
AThe lender's credit score requirements
BPrepaid interest paid at closing; one point equals 1% of the loan amount✓ Correct
CA fee for originating the loan unrelated to interest
DThe number of years in the loan term
Explanation
Mortgage points (discount points) are prepaid interest paid at closing to reduce the interest rate. One point equals 1% of the loan amount. Paying points lowers the rate but increases upfront costs.
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