Finance
Points paid at closing on a mortgage are:
AFees charged by the title company for closing services
BPrepaid interest paid to the lender to reduce the interest rate✓ Correct
CGovernment fees required on all federally backed loans
DInsurance premiums for PMI
Explanation
Mortgage points (discount points) are prepaid interest paid upfront to the lender to buy down the interest rate. One point equals 1% of the loan amount.
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