Finance
Discount points paid at closing on a Wyoming mortgage:
ADecrease the loan amount
BAre prepaid interest that reduce the interest rate over the life of the loan✓ Correct
CPay for the property inspection
DCover the title insurance premium
Explanation
Discount points are prepaid interest. Each point equals 1% of the loan amount and typically reduces the interest rate by about 0.25%. Paying points 'buys down' the rate, reducing monthly payments—beneficial for buyers who plan to hold the property long-term.
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