Finance
Mortgage points paid at closing in Pennsylvania are primarily used to:
APay the real estate agent's commission
BReduce (buy down) the mortgage interest rate✓ Correct
CFund the escrow account for taxes and insurance
DPay the title insurance premium
Explanation
Mortgage discount points are prepaid interest paid at closing to reduce the loan's interest rate. Each point equals 1% of the loan amount and typically reduces the rate by 0.125% to 0.25%, resulting in lower monthly payments.
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