Finance
In South Carolina, what is 'points' in mortgage lending?
AMonthly service charges on the loan
BPrepaid interest paid at closing, where each point equals 1% of the loan amount✓ Correct
CA penalty for early payoff of the mortgage
DThe lender's profit margin over the index rate on an ARM
Explanation
Mortgage points (discount points) are upfront fees paid to the lender at closing to reduce the interest rate. Each point equals 1% of the loan amount.
Related South Carolina Finance Questions
- What is 'negative amortization' in a South Carolina mortgage?
- A South Carolina buyer obtains an 80% LTV conventional loan on a $320,000 home. The down payment required is:
- In South Carolina, a 'recourse loan' means that after foreclosure, the lender:
- In South Carolina, which federal act requires lenders to give borrowers the right to cancel certain refinance transactions within 3 business days?
- What is 'curtailment' of a mortgage in South Carolina?
- What does PMI (Private Mortgage Insurance) protect in a South Carolina home loan?
- In South Carolina, which government-sponsored enterprise purchases conforming conventional loans from lenders?
- In South Carolina, a lender who packages and sells mortgages to investors as mortgage-backed securities (MBS) operates in which market?
Practice More South Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Carolina Quiz →