Finance
A Nebraska borrower applies for a $200,000 mortgage. The lender charges 2 discount points. The cost of the discount points is:
A$2,000
B$4,000✓ Correct
C$6,000
D$8,000
Explanation
One discount point = 1% of the loan amount. 2 points × $200,000 = $4,000. Discount points are prepaid interest paid to the lender at closing to reduce the interest rate.
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