Finance
A NH lender's 'points' charged at origination increase the effective cost of the loan because:
AThey reduce the principal amount available to the borrower while keeping the nominal rate the same✓ Correct
BThey increase the property tax
CThey are added to the monthly payment
DThey are refundable at payoff
Explanation
Discount or origination points are upfront fees that increase the APR (true cost of borrowing) because the borrower receives less net proceeds (or pays more upfront) while still repaying the full loan amount at the stated interest rate.
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