Finance
What is the purpose of a 'discount point' paid at closing on a South Carolina mortgage?
ATo pay for the property appraisal
BTo buy down the interest rate on the loan✓ Correct
CTo cover the origination fee
DTo pay the first month's mortgage insurance
Explanation
Each discount point equals 1% of the loan amount and is paid at closing to reduce (buy down) the interest rate on the mortgage, resulting in lower monthly payments.
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