Finance
Points paid at closing on a mortgage loan are also called:
AOrigination fees only
BDiscount points — prepaid interest used to buy down the interest rate✓ Correct
CTitle insurance premiums
DPrivate mortgage insurance premiums
Explanation
Discount points are prepaid interest paid at closing to reduce (buy down) the interest rate. One point equals 1% of the loan amount. Paying points upfront lowers the monthly payment.
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