Finance
In Montana, 'points' paid on a mortgage loan represent:
AThe number of years in the loan term
BPrepaid interest paid at closing to reduce the interest rate, with each point equal to 1% of the loan amount✓ Correct
CThe lender's origination fee, always expressed in dollars
DThe mortgage insurance premium
Explanation
Mortgage points (discount points) are prepaid interest paid at closing. Each point equals 1% of the loan amount and typically reduces the interest rate by a specified amount, lowering monthly payments over the life of the loan.
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