Finance
What is 'points' in the context of a North Dakota mortgage transaction?
ACredit score factors used to approve a loan
BPrepaid interest paid at closing, where one point equals 1% of the loan amount✓ Correct
CAnnual percentage rate adjustments
DLender's profit on the secondary market sale
Explanation
Discount points are prepaid interest paid at closing to reduce the interest rate. One point equals 1% of the loan amount. Paying points ('buying down the rate') lowers the monthly payment over the loan term.
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