Finance
Discount points paid at closing are used to:
ACover the lender's processing fees
BBuy down the mortgage interest rate✓ Correct
CReduce the property's assessed value
DPrepay property taxes
Explanation
Discount points (also called mortgage points) are prepaid interest paid at closing to reduce the loan's interest rate. Each point equals 1% of the loan amount. Paying points makes sense for buyers who plan to stay in the home long-term.
Related Oregon Finance Questions
- The term 'amortization' in mortgage lending refers to:
- What is a 'short sale' in Oregon real estate and what are its tax implications?
- Which of the following best describes a 'wraparound mortgage'?
- In Oregon, which type of deed is typically used to convey title from the trustee to the buyer at a non-judicial foreclosure sale?
- A lender who 'red lines' a neighborhood by refusing to make loans there based on its racial composition is violating which laws?
- Oregon's Oregon PACE (Property Assessed Clean Energy) program allows property owners to finance energy improvements that are repaid through:
- An Oregon homebuyer wants to use an Oregon Bond Residential Loan. This program is administered by:
- Under the Real Estate Settlement Procedures Act (RESPA), which of the following practices is prohibited?
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →