Finance
What is 'points' in the context of a Rhode Island mortgage loan?
ACredit score thresholds set by the lender
BPrepaid interest charged at closing, where one point equals 1% of the loan amount✓ Correct
CAnnual property tax payments divided by 12
DThe lender's annual profit margin
Explanation
Points (also called discount points) are prepaid interest paid at closing to reduce the loan's interest rate. One point equals 1% of the loan amount.
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