Finance
In Massachusetts, 'points' paid by the buyer at closing to reduce the mortgage interest rate are called:
AOrigination points
BDiscount points✓ Correct
CService points
DJunk fees
Explanation
Discount points are prepaid interest paid at closing to 'buy down' (reduce) the mortgage interest rate. One discount point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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