Finance
A Mississippi lender offers a mortgage with 'points' to buy down the interest rate. One discount point equals:
A0.5% of the loan amount
B1% of the loan amount✓ Correct
C1% of the purchase price
D$1,000 regardless of loan amount
Explanation
One discount point equals 1% of the loan amount. Paying points (prepaid interest) at closing reduces the ongoing interest rate.
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