Finance
A point paid on a mortgage loan equals:
A1% of the property's purchase price
B1% of the loan amount✓ Correct
C$1,000 regardless of loan size
D0.1% of the loan amount
Explanation
One mortgage point equals 1% of the loan amount. Points may be paid to 'buy down' the interest rate (discount points) or as origination fees. For example, on a $200,000 loan, one point = $2,000.
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