Finance
In Indiana, 'points' paid on a mortgage loan are:
APayments to the real estate agent for referrals
BPrepaid interest equal to 1% of the loan amount per point✓ Correct
CPenalties for early payoff
DProcessing fees for the appraisal
Explanation
Discount points are prepaid interest payments to the lender at closing. One point equals 1% of the loan amount. Buying points reduces the interest rate over the loan term and may be deductible as mortgage interest.
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