Finance
Points paid on a Vermont mortgage loan represent:
AThe lender's origination score for the borrower
BPrepaid interest where one point equals 1% of the loan amount✓ Correct
CThe appraiser's fee expressed as a percentage
DThe closing attorney's fee
Explanation
Mortgage points are prepaid interest; one point equals 1% of the loan amount. Paying points upfront reduces the interest rate, which may benefit buyers who plan to hold the mortgage long-term.
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