Finance
In mortgage lending, 'points' are calculated based on:
AThe property's appraised value
BThe loan amount✓ Correct
CThe purchase price
DThe down payment amount
Explanation
One point equals 1% of the loan amount (not the purchase price or appraised value). Lenders charge points as origination fees or discount points. For a $200,000 loan, one point = $2,000.
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