Finance
What is the purpose of 'discount points' in a South Carolina mortgage transaction?
ATo reduce closing costs
BTo permanently buy down the interest rate on the loan✓ Correct
CTo avoid mortgage insurance
DTo extend the loan term
Explanation
Discount points (each equal to 1% of the loan amount) are paid upfront to permanently reduce the mortgage interest rate. The decision to pay points depends on how long the borrower plans to keep the loan.
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