Finance
In Missouri, 'points' paid on a mortgage loan represent:
AA penalty for early payoff
BPrepaid interest charges; one point equals 1% of the loan amount✓ Correct
CMonthly payment credits
DInsurance premium surcharges
Explanation
Mortgage points (discount points) are prepaid interest. One point = 1% of the loan amount. Paying points typically lowers the interest rate. In Missouri and nationwide, borrowers weigh the upfront cost against long-term interest savings.
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