Finance
In South Dakota, 'points' paid to a lender can be classified as either 'discount points' or 'origination points.' Discount points differ in that they:
AAre always charged by the lender regardless of choice
BAre paid to permanently buy down the interest rate✓ Correct
CAre required by law for all mortgage loans
DApply only to FHA and VA loans
Explanation
Discount points are prepaid interest paid upfront to permanently reduce the loan's interest rate. Origination points are fees for processing the loan.
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