Financing Practice Question | Real Estate Exam | EstatePass

Financing

Mortgage points (discount points) are:

A

Fees reducing down payment

B

Government down payment discounts

C

Fees reducing interest rate

D

Government interest discounts

Explanation

Discount points are prepaid interest paid at closing to reduce the loan's interest rate. One point equals 1% of the loan amount and typically reduces the rate by 0.25%.

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