Finance
A NH buyer is offered a mortgage with 2 discount points on a $300,000 loan. How much will the buyer pay in points at closing?
A$3,000
B$6,000✓ Correct
C$1,500
D$600
Explanation
One discount point equals 1% of the loan amount. Two points = 2% × $300,000 = $6,000. Discount points are prepaid interest that reduces the loan's interest rate. Buyers must weigh the upfront cost against the long-term savings from the lower rate.
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