Finance
Which of the following best describes 'points' in a Louisiana mortgage transaction?
APrepaid interest paid at closing to reduce the loan's interest rate✓ Correct
BMonthly mortgage payments
CProperty tax installments
DEscrow account contributions
Explanation
Points (discount points) are prepaid interest paid at closing. Each point equals 1% of the loan amount and is used to 'buy down' the interest rate on the mortgage.
Related Louisiana Finance Questions
- A 'hybrid ARM' in Louisiana is a mortgage that features:
- A Louisiana homeowner's HELOC (home equity line of credit) has a 10-year draw period followed by a 20-year repayment period. During the repayment period, the borrower:
- In Louisiana, a 'partial release clause' in a blanket mortgage allows the mortgagor to:
- In Louisiana, a 'seller-assisted down payment' arrangement where the seller contributes to the buyer's down payment has historically been:
- An adjustable rate mortgage (ARM) in Louisiana has an interest rate that:
- A Louisiana property has a fair market value of $200,000. At a 10% assessment ratio and a millage rate of 80 mills, what is the annual property tax?
- In Louisiana, a 'balloon mortgage' means:
- Under RESPA (Real Estate Settlement Procedures Act), a kickback arrangement where a title company pays a real estate broker for referrals is:
Practice More Louisiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Louisiana Quiz →