Finance
What is the difference between 'discount points' and 'origination fees' in a Kansas mortgage?
AThey are the same thing with different names
BDiscount points are prepaid interest that lower the rate; origination fees compensate the lender for processing the loan✓ Correct
COrigination fees lower the rate; discount points are processing fees
DNeither affects the APR
Explanation
Discount points are prepaid interest (1 point = 1% of loan) that reduce the mortgage interest rate. Origination fees compensate the lender for processing. Both are included in the APR calculation.
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