Finance
Discount points paid at closing in Virginia are best described as:
APrepaid property taxes
BPrepaid interest paid to the lender to buy down the interest rate✓ Correct
CFees paid to the title company
DPoints paid to the real estate agent
Explanation
Discount points are prepaid interest paid at closing to reduce (buy down) the interest rate on the loan. Each point equals 1% of the loan amount.
Related Virginia Finance Questions
- Under Regulation Z, an advertisement for a Virginia home loan that mentions a specific interest rate must also:
- A Virginia borrower defaults on a deed of trust. After the trustee's sale, the property sells for less than the outstanding loan balance. The lender may seek:
- A Virginia buyer obtains a $300,000 mortgage at a 6% annual interest rate. What is the interest due for the first month?
- In Virginia, the Grantor's Tax on deed recordation is calculated at:
- Negative amortization on a Virginia mortgage occurs when:
- A Virginia lender requires private mortgage insurance (PMI) on a conventional loan. PMI is typically required when the loan-to-value (LTV) ratio exceeds:
- What is the debt-to-income ratio that most conventional lenders use as a maximum 'back-end' ratio for Virginia borrowers?
- In Virginia, seller financing (seller carryback) is a method where:
Practice More Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Virginia Quiz →